Use the information of CDC Ltd. below for Questions #26 to #27.

On October 13, 2019, CDC Ltd. sold Gosh Co. products for $3,000 on credit and the products had cost CDC $1,200. The expected return rate is 12%. On November 8, 2019, Gosh returned products worth $400 to CDC and the returned products had a cost of $160 and are still in saleable condition.

26. What is the balance of Refund Liability as at October 13, 2019?

1. $216 on debit.
2. $216 on credit.
3. $360 on debit.
4. $360 on credit.
5. None of the above.

27.What is the balance of Estimated Inventory Returns as at November 8, 2019?

1. $16 on debit.
2. $16 on credit.
3. $256 on debit.
4. $256 on credit.
5. None of the above.

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