Franklin Corporation sells a variety of vitamins and health supplements to customers on account. On February 10, 2021, a customer purchased $4,000 of products (cost $2,000) on account Sales returns are allowed up to 60 days. During February, $1,000 in products were returned (cost $700). What entry should Franklin record when customers returned the products sold? OA Sales returns and allowances Debit 1,000 Credit Refunds liability Inventory Estimated cost of goods sold 1,000 700 700 Refund liability OB Sales returns and allowances Cost of goods sold Sales returns and allowances Debit Credit 1,000 700 300 Debit Credit 1,000 Accounts receivable 1,000 Returned inventory 700 Cost of goods sold 700 100 Debt Credit 1.000 Sales Sales returns and allowances 1,000