(a) Your answer is 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 the amount is entered. Do not indent manually.) Account Titles and Explanation Cost of Goods Sold Inventory Debit 990 990 eTextbook and Media List of Accounts (b) Your answer is partially correct. Prepare closing entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Account Titles and Explanation Cost of Goods Sold Inventory (To close credit balance accounts.) Income Summary Cost of Goods Sold Operating Expenses Sales Returns and Allowances Sales Discounts (To close accounts with debit balances.) Income Summary Owner's Capital Debit Credit 94490 31900 2860 1430 (To transfer net income to capital.)