The $30,000 beginning balance of inventory consists of 300 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions:

January 3Purchase 1,200 units for $126,000 on account ($105 each).January 8Purchase 1,300 units for $143,000 on account ($110 each).January 12Purchase 1,400 units for $161,000 on account ($115 each).January 15Return 100 of the units purchased on January 12 because of defects.January 19Sell 4,000 units on account for $600,000. The cost of the units sold is determined using a FIFO perpetual inventory system.

January 22Receive $580,000 from customers on accounts receivable.January 24Pay $410,000 to inventory suppliers on accounts payable.January 27Write off accounts receivable as uncollectible, $2,500.January 31Pay cash for salaries during January, $128,000.

The following information is available on January 31, 2018.

1. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
2. At the end of January, $4,000 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected.
3. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
4. Accrued income taxes at the end of January are $12,300.

Prepare the adjusting entry for inventory