We have the following balances from the unadjusted trial balance at December 31, 20X5:

Total credit sales $5,000,000 credit balance

Accounts receivable $1,700,000 debit balance (already includes the returns above)

Allowance for doubtful accounts $20,000 credit balance

Refund liability $1,250 credit balance (the prior year estimate wasnt perfect!)

There were no additional returns during the year after the 1,000 cookie order return recorded above.

Requirement 2: Show all adjusting entries necessary at year-end related to accounts receivable (in proper form).