5M Inc. sells merchandise for $100,000 for the month of June. The company estimates returns to be equal to 2.5% of sales. Actual returns for the month for items sold in June totaled $1,000. What is the correct balance in Refund Liability on June 30 based on these transactions? Select one: O a. $1,500 b. $1,000 c. $0 d. $2,500