Lacey Company recorded sales of $6,800,000 for the year ended December 31, 2020. During 2020, the company recorded actual returns and allowances of $85,000. As of December 31, 2020, Lacey estimates sales returns at 3% of current year sales. It is the company's policy to provide refunds on account. Lacey uses a perpetual inventory system and records estimated returns at the end of the period, The balance in Refund Liability is $61,200 and the balance in Inventory- Estimated Returns is $24,480 on January 1, 2020. a. Prepare the journal entries to record sales in 2020 assuming all sales are on account. Cost of goods sold is 40% of the selling price. b. Prepare the journal entries to record actual returns in 2020, c. Prepare the adjusting entries, if any, related to estimated returns on December 31, 2020, Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr.answers a. Account Name Dr. Cr. . To record sales D To record cost of sales b. Account Name Dr. Cr. > . . To record sales returns To record cost of sales returns C. Account Name Dr. Cr.