31. Cagnie Company recorded sales of $8,000,000 for the year ended December 31, 2020. During 2020, the company recorded actual returns and allowances of $100.000. As of December 31, 2020, Cagnie estimates sales returns at 3% of current year sales. It is the company's policy to provide refunds on account. Cagnie uses a perpetual inventory system and records estimated returns at the end of the period. The balance in Refund Liability is $72,000 and the balance in Inventory-Estimated Returns is $28.800 on January 1, 2020. Required 1. Prepare the journal entries to record sales in 2020 assuming all sales are on account. Cost of goods sold is 40% of the selling price. 2. Prepare the journal entries to record actual returns in 2020. 3. Prepare the adjusting entries, if any, related to estimated returns on December 31, 2020