Question#4: Macys allows its customers to return merchandise for any reason up to 60 days after purchase and receive a credit to their accounts. All of Macys' sales are for credit (no cash is collected at the time of sale). The company began year 1 with an allowance for sales returns of $275,000. During year 1, Macys sold merchandise on account for $20,000,000. This merchandise sold cost Macys 35% of selling prices. the year, customers returned $600,000 in sales for credit. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year Required: 6 points) (6 points) 1. Prepare the entry to record the merchandise returns Il. Prepare the year-end adjusting entry for estimated returns lI. What is the amount of the year-end allowance for sales returns after the (4 points) adjusting entry is recorded