Question 4 Not complete Marked out of 10.00 Recording Entries for Sales and Estimated Returns Lacey Company recorded credit sales of $5,200,000 for the current year ended December 31 . During the current year, the company recorded actual returns of $65,000. As of December 31, Lacey estimates sales returns at 3% of current year sales, originally made on account. It is the company's Refund Liability was $46,800 and the balance in Inventory-Estimated Returns was $18,720 on January 1 of the current year. a. Prepare the journal entries to record sales and cost of goods sold for the current year. Assume all sales are on account and cost of goods sold is 40% of the selling price. b. Prepare the journal entries to record actual returns during the current year. Include the cost of goods sold entry. c. Prepare the adjusting entries related to estimated returns on December 31 . Include the cost of goods sold entry. 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 blank (zero). Cash Accounts Receivable Allowance for Doubtful Accounts Interest Receivable Inventory Inventory-Estimated Returns Refund Liability Sales Revenue Sales Returns Sales Discount Sales Discount Forfeited Cost of Goods Sold Bad Debt Expense N/A