Taster's Choice sells natural supplements to customers with an unconditional right of return if they are not satisfied. The right of returns extends 60 days. On February 10, 2014, a customer purchased P3,600 of products (cost P1,800). If based on prior experience, estimated returns are 20%. The journal entry to record the return of P240 of merchandise includes

a: credit to Returned Inventory for P120

b.credit to Refund Liability for P240.

c.credit to Estimated Inventory Returns for P120

d.debit to Estimated Inventory Returns for P120.