Question 13 (1 point) Question 25) On August 5, Michaels Ltd. sells goods for $1,500 on account and the cost to Michaels was $800. Michaels expects a return rate of 5%. On August 12, goods with a selling price of $400 and a cost of $215 are returned for credit and restored to inventory. The journal entry to record the return of goods on August 12 would include: O e. debit to Refund Liability for $75. b. credit to cost of goods sold for $215. a. credit to Estimated Inventory Returns for $215. c. debit to Refund Liability for $40. d. debit to Accounts Receivable for $1,500