Beethoven Music Company started business in March 2016. Sales for its first year were $400,000. Beethoven priced its merchandise to yield a 45% gross profit based on sales dollars. Industry statistics suggest that 10% of the merchandise sold to customers will be returned. Beethoven estimated its sales returns based on the industry average. During the year, customers returned $30,000 in sales. Beethoven uses a perpetual inventory system. Required: Prepare summary journal entries to record

(1) Sales,

(2) Sales returns, and

(3) The year-end adjusting entry for estimated sales returns. Assume that cash has not yet been collected for merchandise that could yet be returned.