Botanic Choice sell natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2018, a customer purchases $4,000 of products (cost $2,000). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes a

		Debit to Cash and a Credit to Sales Revenue of $4,000
		Debit to Allowance for Sales Returns of $800 and a credit to Cost of Goods Sold of $400
		Debit to Cost of Goods Sold and Credit to Inventory for $2,000
		Credit to Estimated Inventory Returns of $400