Bullock Company provides up to 90 days after delivery for its customers to return purchased merchandise. All of Bullock's sales are on credit (in other words, no cash is collected at the time of sale). The company began 20X1 with a refund liability of $390,000. During 20X1, Bullock sold merchandise on account for $12,400,000. Bullock's cost of goods is 65% of merchandise selling price. Also during the year, customers returned $368,000 in sales for credit, with $203,000 of those being returns of merchandise sold prior to 20X1, and the rest being merchandise sold during 20X1. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 20X1 of merchandise that was sold prior to 20X1; (b) record actual returns in 20X1 of merchandise that was sold during 20X1; 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 1 Required 2 Prepare entries to (a) record actual returns in 20X1 of merchandise that was sold prior to 20X1; (b) record actual returns in 20X1 of merchandise that was sold during 20X1; and (c) adjust the refund liability to its appropriate balance at year end. (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 56 Record the actual sales return of merchandise sold prior to 20X1.