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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