alifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and ceive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The ompany began 2024 with a refund liability of $320,000. During 2024, Halifax sold merchandise on account for 11,700,000. Halifax's merchandise costs are 75% of merchandise selling price. Also during the year, customers. turned $460,000 in sales for credit, with $255,000 of those being retums of merchandise sold prior to 2024, and the st being merchandise sold during 2024. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry the end of the year. equired: 1. Prepare entries to (a) record actual retums in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at year end. 2. 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. Required Required 1 2 Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; 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. View transaction list Journal entry worksheet 1 2 3 4 5 6 Record the actual sales returns of merchandise sold prior to 2024. Note: Enter debits before credits. Year 2024 General Journal Debit Credit Record entry View general journal Clear entry Show less A Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $320,000. During 2024, Halifax sold merchandise on account for $11,700,000. Halifax's merchandise costs are 75% of merchandise selling price. Also during the year, customers. returned $460,000 in sales for credit, with $255,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. 3 Required: 1. Prepare entries to (a) record actual retums in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at year end. 2. 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. nce Required Required What is the amount of the year-end refund liability after the adjusting entry is recorded? Ending balance in refund lability