Assume that Swifty Company uses the contract-based approach for revere recognition Swifty Company sells merchandise on account for $2420 to Pharoah Company Pharoah Company returns $740 (cost $410) of merchandise that was the wrong colour, along with a cheque to settle the account. What entry does Swifty Company make upon receipt of the cheque and the returned merchandise o cach Refund liability Merchandise Inventory AC Receivable Estimated Inventory Returns 1680 740 410 2420 410 2420 Refund liability Accounts Receivable 740 1680 1680 O Cash Accounts Receivable 1680 O Cash Refund Liability Accounts Receivable 1680 740 2420