Recording Estimated Returns

Fizer recognized sales of $$900,000$ during the year on merchandise with a cost of $$468,000.$ Actual sales returns during the

year were $$5,040.$ Based on historical trends, the company estimates returns to be $1\mathrm{.}5\%$ of sales. Assuming all sales are on

account, record the adjusting entry for estimated sales returns on December $31.$ Include the cost of goods sold entry.

Note: Round your answers to the nearest whole number.