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 Account Title Debit Credit Sales Refunds Payable 10,000 Accounts Receivable 10,000 Account Title Debit Credit Sales Returns and Allowances 10,000 Sales Refunds Payable 10,000 Account Title Debit Credit Merchandise Inventory 10,000 Sales Refunds Payable 10,000 Account Title Debit Credit Sales Returns and Allowances 2,500 Sales Refunds Payable 2,500 Account Title Debit Credit Sales Refunds Payable 2,500 Sales Returns and Allowances 2