Customer allowances and returns Assume the following data for Casper Company before its year-end adjustments: Unadjusted Balances Debit Credit Sales $1,750,000 Cost of Merchandise Sold $1,000,000 Estimated Returns Inventory 600 Customer Refunds Payable 400 Estimated cost of merchandise that will be returned in the next year $8,000 Estimated percent of refunds for current year sales 0.6% a. Journalize the adjusting entry for the estimated customer allowances. b. Journalize the adjusting entry for the estimated customer returns. Assume the following data for Casper Company before its year-end adjustments: Unadjuste Debit Sales Cost of Merchandise Sold Estimated Returns Inventory Customer Refunds Payable $1,000,000 600 Accounts Payable pat will be returned in the next year current year sales $8,000 0.6% Accounts Receivable Cash for the estimated customer allowances. Cost of Merchandise Sold Merchandise Inventory Purchases Purchases Discounts for the estimated customer returns. Purchases Returns and Allowances thin