Credit Year 2021 General Journal Refund liability Accounts receivable Debit 289,000 289,000 2021 173,400 Inventory Inventory-estimated returns 173,400 2021 235,000 Sales returns Accounts receivable 235,000 2021 141,000 Inventory Cost of goods sold 141.000 00 00 00 00 2021 524,000 Sales returns Refund liability 524,000 3 Inventory-estimated returns Cost of goods sold 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 $470,000. During 2021, Halifax sold merchandise on account for $13,200,000. Halifax's merchandise costs it 60% of merchandise selling price. Also during the year, customers returned $524,000 in sales for credit with $289,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 4% 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? 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.)