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Business, 15.11.2019 03:31 tiannaetzel

Botanic choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. the sales returns period extends 60 days. on february 10, 2018, a customer purchases $4,000 of products (cost $2,000). assuming that based on prior experience, estimated returns are 20%. the journal entry to record the actual return of $250 of merchandise includes a

a. credit to allowance for sales returns for $250.

b. credit to returned inventory for $125.

c. debit to returned inventory for $125.

d. debit to estimated inventory returns for $125.

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