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 $370,000. During 2024, Halifax sold merchandise on account for $12,200,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $481,000 in sales for credit, with $266,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. 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 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 required" in the first account field. View transaction list View journal entry worksheet No Year General Journal Debit Credit 1 2024 Refund liability 266,000 Accounts receivable 266,000 2 2024 Inventory Inventory estimated returns 3 2024 Sales returns Accounts receivable 172,900 172,900 215,000 215,000 4 2024 Inventory 139,750 Cost of goods sold 139,750 5 2024 Sales returns Refund liability 6 2024 Inventory-estimated returns Cost of goods sold < Required 1 Required 2 > Show less