At the current year-end, a company shows the following unadjusted balances for selected accounts.

a. After an analysis of future sales discounts, the company estimates that the Allowance for Sales Discounts account should have a $275 credit balance. Prepare the current year-end adjusting journal entry for future sales discounts.

b. After an analysis of future sales returns and allowances, the company estimates that the Sales Refund Payable account should have an $870 credit balance (revenue side).

c. After an analysis of future inventory returns, the company estimates that the Inventory Returns Estimated account should have a $500 debit balance (cost side).

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Allowance for Sales Discounts... Sales Refund Payable...... Inventory Returns Estimated $ 75 credit 800 credit 450 debit Sales Discounts... Sales Returns and Allowances Cost of Goods Sold... $1,850 debit 4,825 debit 9,875 debit