Presented is information related to Hurley Co. for the month of January 2012. Ending inventory per perpetual records $27,230 Ending inventory actually on hand 26,644 Cost of goods sold 222,470 Freight out 7,530 Insurance expense 12,350 Rent expense 29,230 Salary expense 64,890 Sales discounts 10,470 Sales returns and allowances 13,620 Sales 388,540 Instructions (a) Prepare the necessary adjusting entry for inventory. Description/Account Debit Credit (b) Prepare the necessary closing entries. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.) Description/Account Debit Credit (To close income statement accounts with credit balances.) (To close income statement accounts with debit balances.) (To close net income to capital.)