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 $2024$ with a refund liability of $$400,000.$ During $2024,$ Halifax sold merchandise on account for $$12,500,000.$ Halifax's merchandise costs are $70\%$ of merchandise selling price. Also during the year, customers returned $$613,000$ in sales for credit, with $$338,000$ 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:

Prepare entries to $($a$)$ record actual returns 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.

What is the amount of the year$-$end refund liability after the adjusting entry is recorded?

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Prepare entries to $($a$)$ record actual returns 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.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry fequired" in the first account field.

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$\backslash$table$[[,$No$,$Year,General Journal,Debit,Credit$],[$r$,1,2024,$Refund liability,$338,000,],[,,,$Accounts receivable,,$338,000],[,,,,{40}^{20},],[,2,2024,$Inventory,$236,600,],[,,,$Inventory estimated returns,,$236,600],[,,,,,],[0,3,2024,$Sales returns,$275,000,],[,,,$Accounts receivable,,$275,000],[,,,sin(2),,],[0,4,2024,$Inventory,$192,500,],[,,,$Cost of goods sold,,$192,500],[,,,,,],[7,5,-2024,$Sales returns,,$],[,,,$Refund liability,,$],[,,,,,],[0,6,2024,$Inventory$-$estimated returns,,$],[,,,$Cost of goods sold,,$]]$