ABC Company had sales of $180,000 for the year with cost of goods sold of $144,000. ABC estimates that approximately 3% of the merchandise sold will be returned. The adjusting journal entries to record the estimated returns, using the perpetual inventory system would be O A. Cash Refunds Payable 5,400 5,400 Estimated Returns Inventory Merchandise Inventory 4,320 4,320 5,400 B. Sales Revenue Refunds Payable 5,400 4,320 Estimated Returns Inventory Cost of Goods Sold 4,320 4,320 C. Sales Revenue Refunds Payable 4,320 5,400 Estimated Returns Inventory Merchandise Inventory 5.400 4320 OD Sales Revenue Refunds Payable 4320 5,400 Estimated Returns Inventory Cost of Goods Sold 5.400