Adjusting entry for customer refunds, allowances, and returns

Scott Company had sales of $$12,400,000$ and related cost of goods sold of $$7,200,000$ for the year ending December $31,20Y8.$ Scott provides customers a refund for any returned or damaged merchandise. Scott Company estimates that customers will request refunds for $0\mathrm{.}8\%$ of sales and estimates that merchandise costing $$44,000$ will be returned in $20$ Y $9.$

Journalize the adjusting entries on December $31,20y8,$ to record the expected customer returns. If an amount box does not require an entry, leave it blank.

$20$Y$8$ Dec. $31$

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$q,$

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$20$ Y $8$ Dec. $31$

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