Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $18,280 at the beginning of 2021 and a $24,410 credit balance at the end of 2021 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statement for 2021 would have included bad debt expense of $19,100 and revenue of $4,200 from the collection of previously written off bad debts. Required: Determine bad debt expense for 2021 according to the allowance method. Bad debt expense for the year 2021 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 2021 with a refund liability of $440,000. During 2021, Halifax sold merchandise on account for $12,900,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $630,000 in sales for credit, with $347,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; 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.) Year General Journal Credit No 1 Debit 347,000 Refund liability 347,000 2 225,550 225,550 3 283,000 283,000 183,950 183,950 298,000 298,000 4 5 2021 2021 2021 2021 2021 Accounts receivable Inventory Inventory-estimated returns Sales returns Accounts receivable Cost of goods sold Inventory Sales returns Refund liability 33 00 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Debit Credit Year General Journal No 1 Refund liability 347,000 347,000 2 225,550 225,550 3 283,000 283,000 4 183,950 183,950 5 298,000 > 298,000 362,000 6 2021 2021 2021 2021 Jay 2021 2021 Accounts receivable Inventory Inventory-estimated returns Sales returns Accounts receivable Cost of goods sold Inventory Sales returns Refund liability Inventory-estimated returns Cost of goods sold > >> >> Required 2 > 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 2021 with a refund liability of $440,000. During 2021, Halifax sold merchandise on account for $12,900,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $630,000 in sales for credit, with $347,000 of those being returns. of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (al record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the amount of the year-end refund liability after the adjusting entry is recorded? Ending balance in refund liability