Company A allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Company A's sales are for credit (no cash is collected at the time of sale). The company began 2025 with a refund liability of $120,000. During 2025, Company A sold merchandise on account for $5,600,000. Also during the year, customers returned $140,000 in sales for credit, with $50,000 of those being returns of merchandise sold prior to 2025, and the rest being merchandise sold during 2025. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. The entry to adjust the refund liability to its appropriate balance at year end would include a: O credit to refund liability of $64,000 O debit to sales returns of $90,000 O credit to sales returns of $134,000 O credit to refund liability of $134,000