Surplus Galore uses the gross method of accounting for sales discounts. Selected data from its records for the year ended December 31 was as follows: 
Journalize the adjusting entry for estimated sales discounts.
Definitions:
Third Party
An entity that is not directly involved in a transaction or contract but may be affected by it or may have interests that are affected.
Constructive Notice
Notice of agency termination that is usually given by publishing an announcement in a newspaper.
Agency Termination
The act of ending the relationship between an agent and their principal, which can occur for various reasons including mutual agreement, achievement of the agency's purpose, or breach of contract.
Reject the Performance
A buyer's right to refuse acceptance of goods if they do not conform to the contract in a commercial sales transaction.
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