Halifax Manufacturing allows its customers to retum 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 2018 with a refund liability of $340,000. During 2018, Halifax sold merchandise on account for $11,900,000. Halifax's merchandise costs It 65% of merchandise selling price. Also during the year, customers returned $580,000 in sales for credit, with $321,000 of those being returns of merchandise sold prior to 2018, and the rest being merchandise sold during 2018. 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 2018 of merchandise that was sold prior to 2018; (b) record actual returns In 2018 of merchandise that was sold during 2018; 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 2018 of merchandise that was sold prior to 2018; (b) record actual returns in 2018 of merchandise that was sold during 2018; 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 Record the actual sales return of merchandise sold prior to 2018. Note: Enter debits before credits. Year General Journal Debit Credit 2018 Record entry Clear entry View general journal Required 1 Required 2 What the amount of the year-end refund liability after the adjusting entry is recorded? Ending balance in refund liability