Establishing an Allowance

2021 Beginning Inventory 5/1/2021 Sold Customer A on account merchandise for 5/5/2021 Customer A paid a half of the AR balance 5/20/2021 Customer A paid the remaining AR balance 6/15/2021 Customer A returned the merchandise for 11/1/2021 Sold Customer B on account merchandise for 11/7/2021 Customer B paid the AR balance in full 12/31/2021 Established allowance for merchandise return $ 8,000,000.00 $ 4,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 300,000.00 $ 3,000,000.00 $ 3,000,000.00 $ 2022 1/15/2022 Customer B returned merchandise of 6/30/2022 Purchased inventory in cash 12/1/2022 Sold Customer Con account merchandise for 12/15/2022 Customer C returned merchandise of Established allowance for uncollectible accounts 12/31/2022 for 30% of the remaining balance 12/31/2022 Established allowance for merchandise return $ 30,000.00 $ 9,000,000.00 $ 7,000,000.00 $ 50,000.00 2023 Customer C went bankrupt and the remaining AR 12/1/2023 will not be collectible