Presented below is information related to Hurly Co., owned by D. Flamont, for the month of January 2017.

Instructions
(a) Prepare the necessary adjusting entry for inventory.
(b) Prepare the necessary closing entries. D. Flamont did not withdraw any cash during the month of January.

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Ending inventory per perpetual records S 21,600 Isrance expense Ending inventory actually on hand Cost of goods sold Freight out 12,000 20,000 55,000 10,000 13,000 380,000 21,000 218,000 7,000 Rent expense Salaries expense Sales discounts Sales returns and allowances Sales