A company allows its customers to return merchandise for any reason up to $90$ days after delivery and receive a credit to theirA company uses the retail method to value its inventory. The following information is available for the year:

$\backslash$table$[[,$Cost,Retail$],[$Beginning inventory,$$260,000,$$$287,000$

accounts. All of the company's sales are for credit $($no cash is collected at the time of sale$).$ The company began the current year with a

refund liability of $$380,000.$ During the current year, company sold merchandise on account for $$12,300,000.$ The company's

merchandise costs are $70\%$ of merchandise selling price. Also during the year, customers returned $$603,000$ in sales for credit, with

$$333,000$ of those being returns of merchandise sold prior to the current year, and the rest being merchandise sold during the current

year. Sales returns, estimated to be $5\%$ of sales, are recorded as an adjusting entry at the end of the year.

Required:

Prepare entries to $($a$)$ record actual returns in the current year of merchandise that was sold prior to the current year; $($b$)$ record

actual returns in the current year of merchandise that was sold during the current year; and $($c$)$ adjust the refund liability to its

appropriate balance at year end.

What is the amount of the year$-$end refund liability after the adjusting entry is recorded?

Complete this question by entering your answers in the tabs below.

Prepare entries to $($a$)$ record actual returns in the current year of merchandise that was sold prior to the current year; $($b$)$ record actual

returns in the current year of merchandise that was sold during the current year; and $($c$)$ adjust the refund liability to its appropriate

balance at year end.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.