{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T08:07:33-04:00", "answer_date": "2024-05-26 08:07:33", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1728944", "url": "\/study-help\/questions\/halifax-manufacturing-allows-its-customers-to-return-merchandise-for-any-1728944", "question_creation_date_js": "2024-05-26T08:07:33-04:00", "question_creation_date": "May 26, 2024 08:07 AM", "meta_title": "[Solved] Halifax Manufacturing allows its customer | SolutionInn", "meta_description": "Answer of - Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and recei | SolutionInn", "meta_keywords": "halifax,manufacturing,customers,return,merchandise,reason,90,days,delivery,receive,credit,accounts", "question_title_h1": " Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts.", "question_title": " Halifax Manufacturing allows its customers to return merchandise for any reason", "question_title_for_js_snippet": "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 $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 (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 sk Required 1 rences 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 )", "question_description": "\"image", "transcribed_text": "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 $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; (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. sk Required 1 rences 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.)", "related_book": { "title": "Cost Accounting A Managerial Emphasis", "isbn": "978-0132960649, 132960648, 132109174, 978-0132109178", "edition": "14th Edition", "authors": "Charles T. Horngren, Srikant M.Dater, George Foster, Madhav", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/58.jpg", "uri": "\/textbooks\/cost-accounting-a-managerial-emphasis-14th-edition-58", "see_more_uri": "" }, "free_related_book": { "isbn": "090614129X", "uri": "\/textbooks\/a-doctor-for-the-people-2000-years-of-general-practice-in-britain-1st-edition-9780906141298-100976", "name": "A Doctor For The People 2000 Years Of General Practice In Britain", "edition": "1st Edition" }, "question_posted": "2024-05-26 08:07:33", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/the-bookkeeper-of-cinnamon-ltd-who-is-usually-responsible-for-287295", "description": "The bookkeeper of Cinnamon Ltd. who is usually responsible for the bank reconciliation is on holiday. 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