Halfax 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 Hability of $410.000. During 2021. Halifax sold merchandise on account for $13.500.000. Halifax's merchandise costs is 65% of merchandise selling price. Also during the year customers returned $532.000 in sales for credit with $294.000 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, () record actual returns in 2021 of merchandise that was sold during 202t 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 complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required: Required 2 Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2001; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance of year end. ( no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Year General Journal Debit Credit 2021 Refundby 294,000 Accounts receivable 294,000 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 of year end. ( no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Year General Journal Debit Credit Rutand ability 204,000 Accounts receivable 294.000 2 2021 191,100 Inventory Inventory-estimated returns 191,100 2021 238,000 Accounts receivable 230.000 2001 154,700 Cost of goods sold 154,700 5 2021 Inventory-estimated returns Allowance for uncollectibles 675.000 675.000 438,750 Cost of goods sold 438,750 merchandise selling price. Also during the year customers returned $532.000 in sales for credit with $294.000 of those be of merchandise sold prior to 2021 and the rest being merchandise sold during 2021 Sales returns estimated to be 45 of so ecorded 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 merchandise that was sold during 202t 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 complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required: Required 2 What is the amount of the year-end refund lability after the adjusting entry is recorded? Ending balance in fund liability 563.000
