Q1-A: Prepare closing entries for a merchandising company (L 4) DO IT! 5-3 The trial balance of Alagoas's Boutique at December 31 shows Inventory R$21,000, Sales Revenue R$156,000, Sales Returns and Allowances R$4,000, Sales Dis. counts R$3,000, Cost of Goods Sold R$92,400, Interest Revenue R$3,000, Freight-Out R$ 1.900, Utilities Expense R$7,400, and Salaries and Wages Expense R$19,500. Prepare the closing entries for Alagoas. Solution 5-3