E5.8 (LO 4), AP Presented below is selected information related to Garland Co. for the year ended January 31, 2022. Ending inventory per Insurance expense $ 12,000 perpetual records Rent expense 20,000 Salaries and wages expense 55,000 Ending inventory actually on hand Sales discounts 10,000 Cost of goods sold Freight-out Instructions $ 21,600 Pronand 21,000 218,000 7,000

Sales returns and allowances Sales revenue a. Prepare the necessary adjusting entry for inventory. b. Prepare the necessary closing entries. 13,000 380,000