Mozart Music Company started business in March 2024. Sales for its first year were $450,000. Mozart merchandise costs are 55% of selling price. Industry statistics suggest that 8% of the merchandise sold to customers will be returned. Mozart estimated its sales returns based on the industry average. During the year, customers returned $32,000 in sales. Mozart uses a perpetual inventory system.
Required:		18 points
1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record sales returns.
3. Prepare the journal entry to record the year-end adjusting entry for estimated sales returns. Assume that cash has not yet been collected for merchandise that could yet be returned.

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