Question 1 of 2 3.15 / 5 : Novak Company had the following account balances at year-end: Cost of Goods Sold $60,870, Inventory $18,070, Utilities Expense $32,660, Sales Revenue $123,390, Sales Discounts $1,030, and Sales Returns and Allowances $1,930. A physical count of inventory determines that merchandise inventory on hand is $12,840. They use the perpetual inventory system. (a) Your answer is partially correct. Prepare the adjusting entry necessary as a result of the physical count. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Cost of Goods Sold Inventory eTextbook and Media List of Accounts Save for Later Attempts: 1 of 5 used Submit Answer (b) Your answer is partially correct. Prepare closing entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Sales Revenue Income Summary (To close accounts with credit balances) Income Summary Cost of Goods Sold Operating Expenses Sales Discounts Save for Later Attempts: 1 OT 5 usea Submit Answer (b) Your answer is partially correct. Prepare closing entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Sales Revenue Income Summary (To close accounts with credit balances) Income Summary Cost of Goods Sold Operating Expenses Sales Discounts IT DOON Sales Returns and Allowances (To close accounts with debit balances) Income Summary Unearned Service Revenue (To close net income / (loss))