Towbin Products selle merchandise on credit for $7,000 on December 1, 2019. The merchandise cost Towbin $4,900(70% of the soling price). Towbin estimates that returns and nilowances will amount to 4% of sales. On December 22, 2010. a customer returns for credit merchandise originally sold on December 1 for $200. Required: 1. Assume Towbin uses a periodic Inventory system. Prepare the journal entries to record the preceding sale and the return of merchandise 2. Assume that Towtin uses a perpetual Inventory system. Prepare the journal entries to record the preceding sale and the retum of morchandise 3. Consider your answer to Requirement 1. How would the preceding information be reflected on Towbin's December 31, 2019, financial statements ? 4. Next Level What is the conceptual advantage of recording sales returns and allowances as a reduction of revenue