Appendix 2 EX 6-40 Adjusting entries for customer refunds, allowances, and returns Simons Company had sales of $24,000,000 and related cost of goods sold of $13,300,000 for its first year of operations ending December 31, 2016. Simons Company provides cus- tomers a refund for any returned or damaged merchandise. At the end of 2046, Simons Company estimates that customers will request refunds for 1.1% of sales and that mer- chandise costing $150,000 will be returned. Journalize the adjusting entries on December 31, 2016, to record the expected customer returns