Bell Company had sales of $120,000 for the year with cost of goods sold of $96,000. Bell estimates that approximately 2% of the merchandise sold will be returned. The adjusting journal entries to record the estimated returns, using the perpetual inventory system would be: 2400 O A. Sales Revenue Refunds Payable 2400 1920 1920 1920 1920 2400 2400 Estimated Returns Inventory Cost of Goods Sold OB. Sales Revenue Refunds Payable Estimated Returns Inventory Cost of Goods Sold O C. Cash Refunds Payable Estimated Returns Inventory Merchandise Inventory OD. Sales Revenue Refunds Payable 2400 2400 1920 1920 2400 2400 1920 Estimated Returns Inventory Merchandise Inventory 1920