. Sales Allowances ANALYST ADJUSTMENTS 5.1 Fitz-Chivalry Corporation reports the following information on its 2019 income statement. $ millions Gross sales..... Allowance for sales returns Net sales.... 2017 2018 2019 $12,588 $13,972 $16,688 882 980 993 $11,706 $12,993 $15,695 Required Analysis of financial statements from prior years shows that the company consistently estimates the al- lowance for sales returns at about 7% of gross sales. What adjustment, if any, would we make to the 2019 income statement? Assume the company's combined federal and state tax rate is 24%. LO

Sales Allowances ANALYST ADJUSTMENTS 5.1 Fitz-Chivalry Corporation reports the following information on its 2019 income statement. Required Analysis of financial statements from prior years shows that the company consistently estimates the allowance for sales returns at about 7% of gross sales. What adjustment, if any, would we make to the 2019 income statement? Assume the company's combined federal and state tax rate is 24%