D) $1,257 For the year ended December 31, 2019, Davidson Mart had sales of $800,000 and cost of goods sold of $600.000. Davidson estimates that approximately 2% of the merchandise sold will be returned. The adjusting journal entry on December 31, 2019, would include a A) debit to Cost of Goods Sold for $12,000 B) credit to Estimated Returns Inventory for $12,000 C) debit to Sales Revenue for $4,000 D) credit to Refunds Payable for $16,000