For the year ended December 31, 2025, Davidson Mart had sales of $700,000 and cost of goods sold of $525,000. Davidson estimates that approximately 3% of the merchandise sold will be returned. The adjusting journal entry on December 31, 2025, would include a A. debit to Cost of Goods Sold for $15,750 B. credit to Refunds Payable for $21,000 C. debit to Sales Revenue for $5,250 D. credit to Estimated Returns Inventory for $15,750