A customer returns undamaged goods to Magna Stereos Inc. that were sold originally for $400 on account. Magna Stereos uses a perpetual inventory system. Assuming the cost of the goods was $275, the journal entry for Magnas Stereos to record the return would be Accounts Receivable 400 Refund Liability 400 Inventory 400 Estimated Inventory Returns 400 Accounts Receivable 400 Refund Liability 400 Inventory 275 Estimated Inventory Returns 275 Refund Liability 400 Accounts Receivable 400 Inventory 275 Estimated Inventory Returns 275