On transaction 1 the journal entry "Accounts Payable" is incorrect. It is also not "Sales Revenue", "inventory estimated returns", or "allowance for uncollectible accounts". Everything else is correct, please say what this transaction should be labelled and explained.

During 2021, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estimates that 8% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns under the assumption that all sales are made for cash (no accounts receivable are outstanding). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet & No Transaction General Journal Debit Credit 1 1 Sales returns 128,000 Accounts payable 128,000 2 2 76,800 Inventoryestimated returns Cost of goods sold 76,800