7) Hadrly Hardware makes only credit sales. It began 2018 with a credit balance of 7) $32,000 in the allownace for sales returns account. Sales during 2018 were $800,000. Cost of Sales was 70%. Rusty estimates that 6% of all sales will be returned. During 2018, customers returned merchandise for credit of $50,000 to their accounts. Where type of account is an allownace for financial statement is it placed sales return account .Where in the A)What is the S balance in the allownace for returns account at the end of 2018? B) Rusty's 2018 income statement would report net sales of B) A) Prepare all required journal entries