Current Attempt in Progress

Cullumber Choice sells natural supplements to customers with an unconditional sales return if they are

not satisfied. The sales return period extends $60$ days. On February $10,2024,$ a customer purchases

$$2900$ of products $($cost $$1450).$ 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:

a$)$ credit to Estimated Inventory Returns of $$290.$

b$)$debit to Sales Returns and Allowances of $$580$ and a credit to Cost of Goods sold of $$290.$

c$)$debit to Cash and a credit to Sales Revenue of $$2900.$

d$)$ debit to Cost of Goods Sold and credit to Inventory for $$1450.$