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Presented below is information related to Pharoah Company, owned by D. Flamont, for the month of January 2021.
Ending inventory per perpetual records $20,700
Insurance expense $11,500
Ending inventory actually on hand 18,700
Rent expense 20,400
Cost of goods sold 216,000
Salaries expense 54,900
Freight out 5,900
Sales discounts 9,500
Sales returns and allowances 13,100
Sales 383,000
Problem 1: Prepare the necessary adjusting entry for inventory.
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