ebook Adjusting entries for customer refunds, allowances, and returns Simons Company had sales of $24,000,000 and related cost of goods sold of $13,300,000 for its first year of operations ending December 31, 2016. Simons Company provides customers a refund for any returned or damaged merchandise. At the end of 2016, Simons Company estimates that customers will request refunds for 1.1% of sales and that merchandise costing $150,000 will be returned. Journalize the adjusting entries on December 31, 2016, to record the expected customer returns. If an amount box does not require an entry, leave it blank 2016 Dec. 31 x Customer Refunds Payable Dec. 31 Estimated Returns Inventory Cost of Merchandige Sold x x x Check My Work Recall that estimated customer refunds reduce sales and are recorded in a liability account. Also be sure to record the estimated cost of the merchandise returned