The balance in the Sales Returns and Allownce account is $2,000. In order to close this account out at the end of the accounting period, you would make the following adjusting entry:

Debit Sales Returns and Allownace and Credit Income Summary

Debit Income Summary and Credit Sales Returns and Allownces

Debit Capital and Credit Sales Returns and Allownances

Debit Sales Returns and Allowances and Credit Capital

None of the above