Question 1 Novak Corp. had the following account balances at year-end: Cost of Goods Sold TRY60,290; Inventory TRY17,730; Operating Expenses TRY30,560; Sales Revenue TRY122,690; Sales Discounts TRY1,080; and Sales Returns and Allowances TRY2,010. A physical count of inventory determines that merchandise inventory on hand is TRY12,940.

(a) Prepare the adjusting entry necessary as a result of the physical count. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(b) Prepare closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)