During 2021, its first year of operations, Hollis Industries recorded sales of $11,300,000 and experienced returns of $790,000. Cost of goods sold totaled $7,910,000 (70% 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.