Lockern Co. estimates sales returns will be 2 1/2% of sales. Total sales on account for the year are $1,550,000.

Required:

a.	Prepare the journal entry to record the sale on account including the estimated return liability.
b.	Prepare the journal entry to record the return of $1,000 of goods on account.

Prepare the journal entry to record the sale on account including the estimated return liability on December 31.