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QUESTION 2 In the current year, Borden Corporation had sales of $2.160,000 and cost of goods sold of $1,280,000. Borden expects returns in the following year to equal 7% of sales. The unadjusted balance in Inventory Returns Estimated is a debit of $22,000, and the unadjusted balance in Sales Refund Payable is a credit of $26,000. The adjusting entry or entries to record the expected sales returns is (arey: 125,200 Sales Returns and Allowances Sales Refund Payable Inventory Returns Estimated Cost of Goods Sold 125,200 67,600 67,600 125.200 Sales Returns and Allowances Sales Cost of Goods Sold Inventory Returns Estimated 125,200 67,6001 67,600 Sales Refund Payable Accounts Receivable 125.200 125,200 Cost of Goods Sold Inventory Returns Estimated 67,600 67,600 Sales Refund Payable Accounts Receivable 125,2001 125,200 2,160,000 Sales Sales Refund Payable Accounts Receivable 151,200 2,008,800 Accounts Receivable Sales 2,160,000 2,160,000