Bavin Company had sales of $1,210,000 and related cost of goods sold of $852,000 for the year ending December 31, 20Y7. Bavin provides customers a refund for any returned or damaged merchandise. Bavin Company estimates that customers will request refunds for 0.5% of sales and estimates that merchandise costing $63,000 will be returned in 20Y8. Journalize the adjusting entries on December 31, 20Y7, to record the expected customer returns.