I am super confused on how to even start with this.

During 2024, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000. Cost of goods sold totaled $6,360,000(60% of sales). The company estimates that 8% of all sales will be returned. Record 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