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Halfax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and recelve a credit to their accounts. All

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Halfax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and recelve a credit to their accounts. All of Helifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $360,000. During 2024, Halifax sold merchandise on account for $12,100,000. Halifax's merchandise costs are 70% of merchandise selling price. Also during the year, customers returned $594.000 in sales for credit, with $328,000 of those being returns: of merchandise sold prior to 2024, and the rest being merchandise sold during 2024, 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 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? Journal entry worksheet 2 (3) 4 5 6 Record the actual sales returns of merchandise sold prior to 2024. Note: Enter debits before credits. Journal entry worksheet 6 Record the cost of merchandise returned for goods sold prior to 2024. Note: Enter debits before credits. Journal entry worksheet 6. Record the actual sales returns of merchandise sold during 2024. Note: Enter debits before credits. Journal entry worksheet 1 6 Record the cost of merchandise returned for goods sold during 2024. Note: Enter debits before credits. Journal entry worksheet 1 2. Record the year-end adjusting entry for estimated returns. Note: Enter debits before credits: Journal entry worksheet 1 2)(3 Record the adjusting entry for the estimated returns of merchandise to inventory. Note: Enter deblies before credits. Complete this question by entering your answers in the tabs below. What is the amount of the year-end refund liability after the adjusting entry is recorded

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