Presented below is information related to Sheridan Company, owned by D. Flamont, for the month of January 2021.

Ending inventory per perpetual records		$22,800		Insurance expense		$11,700
Ending inventory actually on hand		18,600		Rent expense		20,600
Cost of goods sold		205,000		Salaries expense		55,100
Freight out		6,500		Sales discounts		9,600
				Sales returns and allowances		12,900
				Sales		375,000

Prepare the necessary adjusting entry for inventory.

Prepare the necessary closing entries.