Presented below is information related to Taylor Co. for the month of January 2014.
| Ending inventory per | Insurance expense | $ 12,000 | ||||
| perpetual records | $ 21,600 | Rent expense | 20,000 | |||
| Ending inventory actually | Salaries and wages expense | 59,000 | ||||
| on hand | 21,000 | Sales discounts | 8,000 | |||
| Cost of goods sold | 208,000 | Sales returns and allowances | 13,000 | |||
| Freight out | 7,000 | Sales revenue | 378,000 |
(a) Prepare the necessary adjusting entry for inventory.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)