QUESTION 12 For the year ended December 31, 2019, Davidson Mart had sales of $800,000 and cost of goods sold of $600,000 Davidson estimates that approximately 2% of the merchandise sold will be returned. The adjusting journal entry on December 31, 2019, would include a credit to Refunds Payable for $16,000 debit to Cost of Goods Sold for $12,000 credit to Estimated Returns Inventory for $12,000 debit to Sales Revenue for $4,000 QUESTION 12 For the year ended December 31, 2019, Davidson Mart had sales of $800,000 and cost of goods sold of $600,000 Davidson estimates that approximately 2% of the merchandise sold will be returned. The adjusting journal entry on December 31, 2019, would include a credit to Refunds Payable for $16,000 debit to Cost of Goods Sold for $12,000 credit to Estimated Returns Inventory for $12,000 debit to Sales Revenue for $4,000