Which of the following statements is true regarding the financial statement presentation of accrued sales returns and related

accounts.

Estimated Inventory Returns is subtracted from Cost of Goods Sold on the Income Statement.

Refund Liability is netted against Accounts Receivable on the Balance Sheet.

Refund Liabiilty is netted against Sales Revenue on the Income Statement.

Estimated Inventory Returns is added to Inventory on the Balance Sheet.