Instructions a. Prepare the adjusting entry necessary as a result of the physical count. b. Prepare closing entries. E5.8 (LO 4) Presented below is information related to Hoerl Co. for the month of January 2020. Prepare adjusting and Ending inventory per Insurance expense Rent expense Salaries and wages expense Sales discounts Sales returns and allowances Sales revenue s 12,000 20,000 55,000 10,000 13,000 380,000 perpetual records Ending inventory actually $ 21,600 on hand Cost of goods sold Freight-out 21,000 218,000 7,000