Botanic Choice sells natural supplements to customers with an unconditional right of return if they are not satisfied. The right of returns extends 60 days. On February 10, 2014, a customer purchases $3,000 of products for cash (cost $1,500). Assuming that based on prior experience, estimated returns are 20% and Botanic Choice uses the net method to record sales. The journal entry to record the actual return of $200 of merchandise includes a
a. credit to Refund Liability for $200.
b. credit to Returned Inventory for $100.
c. credit to Estimated Inventory Returns for $100.
d. debit to Estimated Inventory Returns for $100.