During $2024,$ its first year of operations, Hollis Industries recorded sales of $$11,900,000$ and experienced returns of $$760,000.$ 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 under the assumption that all sales are made for

cash $($no accounts receivable are outstanding$).$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record estimated return of inventory.

Note: Enter debits before credits.