A customer returned merchandise purchased with cash with a sales price of $9500. The cost of goods was $3800. Which of the following represents the correct way to record this transaction?

Refunds Payable 9500 Cash 9500 Merchandise Inventory 3800 Estimated Returns Inventory 3800

Sales Revenue 9500 Cash 9500 Merchandise Inventory 3800 Cost of Goods Sold 3800

Sales Returns and Allowances 9500 Cash 9500 Estimated Returns Inventory 3800 Merchandise Inventory 3800

Refunds Payable 9500 Sales Revenue 9500 Merchandise Inventory 3800 Estimated Returns Inventory 3800