Presented below is information related to Blossom Company, owned by D. Flamont, for the month of January 2021. Ending inventory per perpetual records Ending inventory actually on hand Cost of goods sold Freight out $20,400 18,700 210,000 6.000 Insurance expense Rent expense Salaries expense Sales discounts Sales returns and allowances Sales $12,700 20,300 54,700 9,700 12,800 368,000 (a) Your answer is correct Prepare the necessary adjusting entry for inventory. (Credit account titles are automatically indented when the amount is entered. Do not indent manually . If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit 1700 Date Account Titles and Explanation Jan. 31 Cost of Goods Sold Merchandise Inventory (To adjust ending inventory to actual at year end.) 1700 Prepare the necessary closing entries. D. Flamont did not withdraw any cash during the month of January. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Credit Debit 368000 Date Account Titles and Explanation Jan. 31 Sales Income Summary (To close income statement account with credit balance.) Income Summary 368000 Jan. 31 117900 Cost of Goods Sold 1700 Freight Out 6000 12800 9700 12700 Sales Returns and Allowances Sales Discounts Insurance Expense Rent Expense Salaries Expense (To close income statement accounts with debit balances.) Income Summary 20300 54700 Jan. 31 81100 D. Flamont, Capital 81100