Chico Company allows its customers to return merchandise within 30 days of purchase. At December 31, 2016, the end of its first year of operations, Chico estimates future period merchandise returns of $77,000 (cost of $31000) related to its 2016 sales. On January 3, 2017, a customer returns merchandise with a selling price of $2,850 for a cash refund; the returned merchandise cost $920 and is returned to inventory as it is not defective. a. Prepare the December 31, 2016, yearend adjusting journal entry for estimated future sales returns and allowances (revenue side). View transaction list Journal entry worksheet Record the adjusting entry for estimated future sales returns and allowances (revenue side). Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal