A Customer Returned Merchandise Purchased with Cash with a Sales

A customer returned merchandise purchased with cash with a sales price of $4,500. The cost of goods was $1,800. Which of the following represents the correct way to record this transaction?

A) $$\begin{array} { | l | r | r | } \hline \text { Refunds Payable } & 4,500 & \\\hline \text { Sales Revenue } & & 4,500 \\\hline & & \\\hline \text { Merchandise Inventory } & 1,800 & \\\hline \text { Estimated Returns Inventory } & & 1,800 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Refunds Payable } & 4,500 & \\\hline \text { Cash } & & 4,500 \\\hline & & \\\hline \text { Merchandise Inventory } & 1,800 & \\\hline \text { Estimated Returns Inventory } & & 1,800 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Sales Revenue } & 4,500 & \\\hline \text { Cash } & & 4,500 \\\hline & & \\\hline \text { Merchandise Inventory } & 1,800 & \\\hline \text { Cost of Goods Sold } & & 1,800 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Sales Returns and Allowances } & 4,500 & \\\hline \text { Cash } & & 4,500 \\\hline & & \\\hline \text { Estimated Returns Inventory } & 1,800 & \\\hline \text { Merchandise Inventory } & & 1,800 \\\hline\end{array}$$