Presented below is information related to Sunland Company, owned by D. Flamont, for the month of January 2017.

Ending inventory per perpetual records		$22,800		Insurance expense		$11,500
Ending inventory actually on hand		17,800		Rent expense		20,200
Cost of goods sold		211,000		Salaries expense		55,800
Freight out		7,100		Sales discounts		9,100
				Sales returns and allowances		13,900
				Sales		369,000

1. Prepare the necessary adjusting entry for inventory.

2. Prepare the necessary closing entries. D. Flamont did not withdraw any cash during the month of January.