Adjusting entry for customer refunds, allowances, and returns Instructions Statz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for is first year of operations ending December 31,20Y1. Statz provides customers a retund tor any retumod of damaged morchandise. A the end of 20Y1, Statz Company estimates that customers will request refunds foe 1,3% of sales and estimatos that merchandise costing $1,2,000 wil be returned. Assume that on Fobruary 3, 20Y2, Buck Co. retumed merchandise with an involoe amount of $5,100 tor a cash refund. The returned merchandise originally cost Statt. Company 53,300. a. doumaitie the adjusting entries on December 31,20Y, to recond the expected customer fehams. b. Joumakte the entries to record the retumed merchandise and cash retund to bluck Co. on February 3, 20 r2. Record Inventory Adjustments eBook CHART OF ACCOUNTS Statz Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 120 Accounts Recelvable 610 Rent Revenue 125 Notes Recelvable 130 Inventory EXPENSES 131 Estimated Returns Inventory 510 Cost of Goods Sold 140 Office Supplies 521 Delivery Expense 141 Store Supplies 522 Adverhsing Expense 142. Prepaid Insurance 524 Depreciation Expense-Store Equipment 180 Land 525 Depreciation Expense-Office Equipment 192 Store Equipment 526 Salaries Expense 193 Accumulated Depreciation-Store Equipment 531 Rent Expense 194 Office Equipment 533 insurance Expense 195 Accumulated Depreciation-Office Equipment 534 Store Supplies Expense 535 Office Supplies Expense LIABILITIES 536 Credit Card Expense 210 Accounts Payable 539 Miscellaneous Expense 216 Salaries Payable 710 interest Expense 218 Sales Tax Payable a. Joumalize the adjusting entrios on Decomber 31 to record the expoctod customer retums. b. Joumaze the entries to record the rotumed morchandise and cash retund to Buck Co. on Fobruary 3. Genoral Joumal instructions