Botanic Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extend 60 days. On February 10, 2020, a customer purchases $90,000 of natural supplements (cost is 60% of sales) terms n/60. Assuming that based on prior experience, estimated returns are 15%. The company uses a perpetual inventory system.

A. Prepare the required journal to record $9,000 actual returns on February 24, 2020.

B. Prepare the required journal entry to record the estimated returns on March 31, 2020 when the Company prepares financial statements.