During its first year of operations, Magenta Company recorded sales of $21,000,000. Based on industry statistics, Magenta estimates 8% of all sales will be returned. Actual returns during the year totaled $1,400,000. The year-end adjusting journal entry to account for estimated sales returns would include a:

	a.	None of the options
	b.	Debit to Sales Returns of $1,680,000
	c.	Debit to Refund Liability of $1,680,000
	d.	Credit to Sales Returns of $280,000
	e.	Credit to Refund Liability of $280,000