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Botanic Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On

Botanic Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period 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 actual return of $250 of merchandise includes a

a. credit to Allowance for Sales Returns for $250.

b. credit to Returned Inventory for $125.

c. debit to Returned Inventory for $125.

d. debit to Estimated Inventory Returns for $125.

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