On April 3, a customer returned $600 of merchandise that had been purchased with cash to Ryan Supplies. Ryan’s cost of the goods returned was $200. Which journal entry or entries should Ryan prepare? (No sales discount was offered for early payment.)

a. One entry to debit Cash and credit Sales Refunds Payable for $600; another entry to debit Inventory Returns Estimated and credit Inventory for $200.

b. One entry to debit Sales Refunds Payable and credit Cash for $600; another entry to debit Inventory and credit Inventory Returns Estimated for $200.

c. One entry to debit Sales Revenue for $600 and credit Cash for $600.

d. One entry to debit Sales Revenue for $400, debit Refund Expense for $200, and credit Cash for $600.