Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise.DateAccountsDebitCreditOct. 13Merchandise Inventory1,140Estimated Returns Inventory1,140Question # 7 S5-9Data TableCost of Goods Sold$380,000 Accumulated Depreciation--Building$48,000Accounts Payable20,000Cash45,000Rent Expense21,000Sales Revenue705,000Building116,000Depreciation Expense--Building16,000Rockwall, Capital212,000Rockwall, Withdrawals55,000Merchandise Inventory257,000Interest Revenue6,000Notes Receivable31,000Requirements1. Journalize the required closing entries for Rockwall.2. Determine the ending balance in the capital account.Requirement 1.Journalize the required closing entries for Rockwall. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing the revenue accounts forthe period. Do not close expenses; we will do this in the next step.