Brief Exercise 7-7 (Algo) Sales returns [LO7-4] During 2021, its first year of operations, Hollis Industries recorded sales of $11.900,000 and experienced returns of $850,000. Cost of goods sold totaled $7.140,000 (60% of sales). The company estimates that 8% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns, assuming that all sales are made on credit and all accounts receivable are outstanding. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is complete but not entirely correct. No Transaction General Journal Credit Sales returns Refund ability Debit 192,000 X 192,000 Inventory Cost of goods sold 115 200 & 115,200