Prepare adjusting and closing entries. E5.7 ( (LO 4), AP Tim Jarosz Company had the following account balances at year-end before adjustment: Cost of Goods Sold \$60,000, Inventory \$15,000, Utilities Expense $29,000, Sales Revenue $115,000, Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of inventory determines that merchandise inventory on hand is $13,600. Instructions a. Prepare the adjusting entry necessary as a result of the physical count. b. Prepare closing entries