5) In the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000. Borden expects returns in the following year to equal 8% of sales. The unadjusted balance in Inventory Returns Estimated is a debit of $6,000, and the unadjusted balance in Sales Refund Payable is a credit of $10,000. The adjusting entry or entries to record the expected sales returns is (are):

• A.Sales2,000,000Sales Refund Payable160,000Accounts receivable1,840,000

• B.Accounts Receivable2,000,000Sales2,000,000

• C.Sales returns and allowances150,000Sales150,000Cost of Goods Sold90,000Inventory Returns Estimated90,000

• D.Sales Refund Payable150,0000Accounts receivable150,000

E.Sales Returns and Allowances150,000Sales Refund Payable150,000Inventory Returns Estimated90,000Cost of goods sold90,000