during 2024, its first year of operations, ashbaugh industries recorded sales of $22,000,000 and experienced returns of $1,500,000. returns are accounted for as they occur, with additional estimated returns accrued at the end of the period. cost of goods sold totaled $15,400,000 (70% of sales). the company estimates that 8% of all sales will be returned. the year-end adjusting journal entry to account for anticipated sales returns would include a: Multiple Choice o Credit to sales returns of
$254,000
o Credit to refund liability of
$254,000
o Debit to sales returns of
$1,784,000
o Debit to cost of sales of
$1,784,000
