1. 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, 2021, 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

		credit to Allowance for Sales Returns for $250.
		credit to Cost of Goods Sold for $125.
		credit to Returned Inventory for $125.
		credit to Estimated Inventory Returns for $125.

Please explain in detail! Thank you. The answer I chose was credit to Returned Inventory for $125. BUT it was wrong!