Sales Allowances

Fitz$-$Chivalry Corporation reports the following information on its $2019$ income statement.

Required

income statement? Assume the company's combined federal and state tax rate is $24\%.$

Hint: For adjustments to the income statement, we assume the normal $7\%$ for the ratio of Allowance for sales returns to Gross sales for each year.

Determine the $2019$ adjusted allowance for sales return. $($Round answer to nearest whole number.$)$

$ millions

$2019$

Adjusted $($total$)$ allowance for sales returns

Using the adjusted $($total$)$ allowance for sales returns computed above, determine the $2019$ adjustments for the following income statement items.

Notes:

Round answers to nearest whole number.

Use negative signs with answers to indicate the adjustment decreases an account.