Presented below is information related to Taylor Co. for the month of January 2014.

Ending inventory per				Insurance expense		$ 12,000
perpetual records		$ 21,600		Rent expense		20,000
Ending inventory actually				Salaries and wages expense		59,000
on hand		21,000		Sales discounts		8,000
Cost of goods sold		208,000		Sales returns and allowances		13,000
Freight-out		7,000		Sales revenue		378,000

(a) Prepare the necessary adjusting entry for inventory. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)