3. A manufacturing company sells large quantities of merchandise on credit to several retail chains. Historically, customers (retailers) return an average of 20% of the merchandise purchased. When entering sales, the company must recognize in the statement of income and expenses

a. The total amount of gross sales, ignoring returns

b. The amount of net sales, after subtracting actual and estimated returns

c. The amount of net sales, subtracting only the actual returns.

d. The amount of the accounts collected.