Assume that wilty Company uses the contract based approach for revenue recognition Swilty Company sells merchandise on account for $220 to Pharoah Company Pharoah Company returns $70 (cost $410) of merchandise that was the wiong colour, along with a cheque to settle the account. What entry does Swity company make upon receipt of the cheque and the returned merchandise Cash Refund ability Merchandise Inventory Accounts Receivable Estimated entory Returns 1680 740 410 2420 410 2420 O cash Refund Liability Accounts Recewable 740 1680 O Cash Accounts Receivable 1680 1680 O Cash Reidablity Accounts Receivable 1680 740 2420