The debits and credits for three related transactions are presented in the following T accounts. Cash Sales (5) 39,200 (1) 41,160 Cost of Goods Sold Accounts Receivable (1) (3) (2) 41,160 1,960 25,200 39,200 (5) Inventory (4) 25,200 (2) 1,200 Estimated Returns Inventory (4) 1,200 Customer Refunds Payable (3) 1,960 Describe each transaction. 1. Sold merchandise on account Recorded the cost of the merchandise sold and reduced the inventory account 2. 3. 4. 5. 1 200 (A) Updated the inventory account for the cost of the merchandise returned Granted a credit against a customer's accounts receivable for returned merchandise Sold merchandise on account Received the balance due Recorded the cost of the merchandise sold and reduced the inventory account account 3. 4. 5. +