On July 2, 2019, Lake Company sold to Black merchandise having a sales price of $6,000 (cost $3,600). Lake estimates that merchandise with a sales value of $600 will be returned. On July 13, Black notified Lake that $250 of merchandise contained flaws and is actually returned to Lake. Please use the Allowance for Sales Return and Allowance method assuming it is a credit sale. What is the amount of Estimated Inventory Returns on July 2?

a) $360

b) $260

c) $460

d) $160