Lopez Company reports unadjusted first-year merchandise sales of $142,000 and cost of merchandise sales of $49,700. a Compute gross profit using the unadjusted numbers . Gross Profit 92300 The company expects future returns and allowances equal to 2% of sales and 2% of cost of sales. b-182. Prepare the year-end adjusting entry to record the sales expected to be refunded and cost side of sales returns and allowances. View transaction list Journal entry worksheet Record the adjusting entry for expected sales returns (revenue side). Note: Enter debits before credits. Credit Transaction General Journal 1 Sales returns and allowances Debit P Record entry Clear entry View general loumal