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

Ending inventory per perpetual records		$21,700		Insurance expense		$13,000
Ending inventory actually on hand		18,800		Rent expense		19,100
Cost of goods sold		217,000		Salaries expense		55,000
Freight out		7,900		Sales discounts		10,900
				Sales returns and allowances		13,000
				Sales		371,000

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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31	enter an account title to adjust ending inventory to actual at year end on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to adjust ending inventory to actual at year end on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	(To adjust ending inventory to actual at year end.)

eTextbook and Media

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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31	enter an account title to close income statement account with credit balance on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to close income statement account with credit balance on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	(To close income statement account with credit balance.)
Jan. 31	enter an account title to close income statement accounts with debit balances on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to close income statement accounts with debit balances on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to close income statement accounts with debit balances on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to close income statement accounts with debit balances on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to close income statement accounts with debit balances on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to close income statement accounts with debit balances on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to close income statement accounts with debit balances on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to close income statement accounts with debit balances on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	(To close income statement accounts with debit balances.)
Jan. 31	enter an account title to close Income Summary account on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	enter an account title to close Income Summary account on January 31 Cost of Goods SoldD. Flamont, CapitalFreight OutInsurance ExpenseIncome SummaryMerchandise InventoryNo EntryRent ExpenseSalesSales DiscountsSalaries ExpenseSales Returns and Allowances	enter a debit amount	enter a credit amount
	(To close Income Summary account.)