Hezir Company had the following account balances at year-end: Cost of Goods Sold 60,000; Inventory 15,000; Operating

Hezir Company had the following account balances at year-end: Cost of Goods Sold Ⱡ60,000; Inventory Ⱡ15,000; Operating Expenses Ⱡ29,000; Sales Revenue Ⱡ115,000; Sales Discounts Ⱡ1,300; and Sales Returns and Allowances Ⱡ1,700. A physical count of inventory determines that merchandise inventory on hand is Ⱡ13,600.

Instructions
(a) Prepare the adjusting entry necessary as a result of the physical count.
(b) Prepare closing entries.