Statz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for its first year of operations ending December 31. Statz provides customers a refund for any returned or damaged merchandise. At the end of the year, Statz estimates that customers will request refunds for 1.5% of sales and estimates that merchandise costing $16,000 will be returned. Assume that on February 3 of the following year, Buck Co. returned merchandise with a selling price of $5,000 for a cash refund. The returned merchandise originally cost Statz $3,100. A. Journalize the adjusting entries on December 31 to record the expected customer returns.* B. Journalize the entries to record the returned merchandise and cash refund to Buck Co. on February 3.* *Refer to the Chart of Accounts for exact wording of account titles.