Use the data for Barkley Company in Problem 4-3B to complete the following requirements. Required 1. Prepare closing entries as of March 31, 2017 (the perpetual inventory system is used) Analysis Component 2. In prior years, the company experienced a 5% returns and allowance rate on its sales, which means approximately 5% of its gross sales were eventually returned outright or caused the company to grant allowances to customers. Compute the ratio of sales returns and allowances divided by gross sales. How does this year's ratio compare to the 5% ratio in prior years? Check ( $55,175 Dr. to close Income Summary ) Current-year ratio, 6.0%