Thorston Corp. reports the following ledger balances at 1/1/x2 related to its trade accounts receivable.

Account	Amount
Accounts receivable	$410,000
Allowance for doubtful accounts	$25,000
Allowance for sales returns	$10,000

Thorston Corp. uses the net method of accounting for cash discounts, allowing terms 3/10, n/40 on its credit sales. During the year, the company recorded credit sales revenue of $2,300,000 and collected cash from its outstanding credit customers of $2,480,000. $2,220,000 of the cash was collected within the 40-day discount window and the remaining $260,000 was collected outside the 40-day window, resulting in $7,800 of sales discounts forfeited.

$19,000 of customer accounts were written off during the year after they were determined to be in default. $2,000 of customer accounts were reinstated after being written off and Thorston Corp. collected $1,800 of these accounts.

The company also offers a 3-month return policy connected with its merchandise sold on credit. The company estimates sales returns at 3% of its sales for the period. During the year, the company recorded $17,000 of actual customer returns.

1. Determine the adjustment required for sales returns for Thorston Corp. at year-end. Provide the impact of each debited and credited account to A/L/NI.