A music company sells electronic pianos with a sales price of $600 and a cost of $420. There is a right of return, which allows a customer to return the piano for a full refund up to 60 days after the sale. When the sale is recorded, the company can estimate the refund liability based on history. Which of the following is the entry to record the return of one piano that is resalable to another customer? 

A. DR Refund liability 600 DR Inventory 420 CR Cash 600 CR COGS 420 

B. DR Refund expense 600 CR Cash 600 

C. DR Refund liability 600 CR Cash 600 

D. DR Refund liability 600 DR Inventory 420 CR Cash 600 CR Refund asset 420

Answer rating: 100% (QA)

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