Under the perpetual inventory system, the adjusting journal entries to record estimated sales returns (the original sales were on account) would be O A. Accounts Receivable Sales Revenue Sales Revenue Cost of Goods Sold OB. Sales Revenue Refunds Payable Estimated Returns Inventory Cost of Goods Sold O C. Sales Returns and Allowances Cost of Goods Sold Merchandise Inventory Accounts Receivable OD. Sales Revenue Merchandise Inventory Estimated Returns Inventory Refunds Payable