Botanic Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2018, a customer purchases $62,000 of natural supplements (cost is 75% of sales) terms n/60. Assuming that based on prior experience, estimated returns are 10%. The company uses a perpetual inventory system.

a.) Prepare the required journal to record $5,000 actual returns on February 24, 2018.

b.) Prepare the required journal entry to record the estimated returns on March 31, 2018 when the Company prepares financial statements?