Jordache Corp. uses a perpetual inventory system and sells merchandise on account to Polo Limited for $$2,000$ on

February $2,$ terms n$/10.$ Management expects a return rate of $10\%.$ The goods cost Jordache $$800.$ On February $5,$ Polo

returns merchandise worth $$500$ to Jordache. This merchandise costs $$300$ and is still in saleable condition; therefore,

it was put back on the shelf. On February $9,$ Jordache receives payment from Polo for the balance due.

Identify the journal entry required by Jordache to record for the cost of the merchandise returned by Polo on February

$5.$

Inventory

Estimated Inventory Returns

Inventory

Estimated Inventory Returns

Inventory

Cost of Goods Sold

$300$

$300$

$500$

$300$

Inventory

$500$

Refund Liabilities