1 Record the anticipated sales returns. 2 Record estimated return of inventory. )uring 2024 , its first year of operations, Hollis Industries recorded sales of $11,600,000 and experienced returns of $710,000. Cost of joods sold totaled $7,540,000 ( 65% of sales). The company estimates that 7% of all sales will be returned. repare the year-end adjusting journal entries to account for anticipated sales returns under the assumption that all sales are made for ash (no accounts receivable are outstanding). lote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field