puauing Expenses $29,000, Sales Revenue $115,000, ent Sales Discounts $1,200, and Sales Returns and Allowances $1.700. A physical count of (Lo ntory determines that merchandise inventory on hand is $13,600. inve Instructions (a) Prepa (b) Prepare closing entries. re the adjusting entry necessary as a result of the physical count. E5-8 Presented below is information related to Hoerl Co. for the month of January 2017. P Ending inventory per Ending inventory actually Cost of goods sold er Insurance expense Salaries and wages expense Sales returns and allowances $12,000 perpetual records $21,600 Rent expense 20,000 (L 55,000 10,000 13,000 380,000 on hand 21,000 Sales discounts 218,000 Freight-out 7,000 Sales revenue Instructions (a) Prepare the necessary adjusting entry for inventory (b) Prepare the necessary closing entries. E5-9 Presented below is information for Kaila Company for the month of March 2017. 30,000 8,000 6,000 Sales returns and allowances 13,000 Cost of goods sold Freight-out Insurance expense Salaries and wages expense $215,000 Rent expense 7,000 Sales discounts 58,000 Sales revenue 380,000 Instructions (a) Prepare a multiple-step income statement. (b) Compute the gross profit rate