Presented below is information related to Hoerl Co. for the month of January 2020. $21,600 Ending inventory per perpetual records Ending inventory actually on hand Cost of goods sold Freight-out Insurance expense Rent expense Salaries and wages expense Sales discounts Sales returns and allowances Sales revenue $12,000 20,000 55,000 10,000 13,000 380,000 21,000 218,000 7,000 (a) Your answer is correct. Prepare the necessary adjusting entry for inventory. (Credit account titles are automatically indented when am indent manually.) Account Titles and Explanation Debit Credit Cost of Goods Sold 600 | Inventory 600 (D) Prepare the necessary closing entries. (Credit account titles are automatically indented Account Titles and Explanation Debit Credit (To close accounts with credit balances) (To close accounts with debit balances) (To close net income / loss)) Click if you would like to Show Work for this question: Open Show Work