B. Lopez Company reports unadjusted first-year sales of $200,000 and cost of sales of $50,000. The company expects future returns and allowances equal to 5% of sales and 5% cost of sales. Prepare the year-end adjusting journal entry for future returns and allowances related to sales. Multiple Choice \begin{tabular}{|c|c|c|} \hline Account Title & Debit & Credit \\ \hline Sales Returns and Allowances & 2,500 & \\ \hline Sales Refunds Payable & & 2,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Account Title & Debit & Credit \\ \hline Sales Refunds Payable & 2,500 & \\ \hline Sales Returns and Allowances & & 2,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Account Title & Debit & Credit \\ \hline Sales Refunds Payable & 10,000 & \\ \hline Accounts Receivable & & 10,000 \\ \hline \end{tabular}