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

Ending inventory per perpetual records		$20,500		Insurance expense		$11,300
Ending inventory actually on hand		17,200		Rent expense		20,800
Cost of goods sold		214,000		Salaries expense		54,800
Freight out		5,800		Sales discounts		11,200
				Sales returns and allowances		12,100
				Sales		369,000

Prepare the necessary adjusting entry for inventory.

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