Answer:
Explanation:
The journal entry is shown below:
(A) Sales return and allowance A/c Dr $450,000 
     To Accounts receivable                        $450,000 
(being returned goods recorded)
 Merchandise inventory A/c Dr $292,500    ($450,000  × 65%)
        To Cost of goods sold                      $292,500
(Being cost of goods sold recorded)
The computation of the estimated return is shown below:
= Sale value of merchandise × return percentage - actual return
= $11,500,000 × 4% - $450,000
= $460,000 - $450,000
= $10,000
(B) Sales return and allowance A/c Dr $10,000
     To Accounts receivable                        $10,000 
(being returned goods recorded)
 Merchandise inventory A/c Dr $6,500    ($10,000  × 65%)
        To Cost of goods sold                      $6,500
(Being cost of goods sold recorded)
The computation of the year-end allowance for sales returns is shown below:
The amount is same $6,500