Adjusting entry for customer refunds, allowances, and returns Statz Company had sales of $2,000,000 and related cost of goods sold of $1,050,000 for its first year of operations ending December 31,20Y1. Statz provides customers a refund for any returned or damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will request refunds for 1.7% of sales and estimates that merchandise costing $18,000 will be returned. Assume that on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $5,000 for a cash refund. The returned merchandise originally cost Statz Company $3,500. a. Journalize the adjusting entries on December 31,20Y1, to record the expected customer returns. If an amount box does not require an entry, leave it blank