Halifax Manufacturing allows its customers to return merchandise for any reason up to $90$ days after delivery and receive a credit to heir accounts. All of Halifax's sales are for credit $($no cashis collected at the time of gale$)$ The company began $2024$ with a refund iability of $$300,000.$ During $2024.$ Halifax sold merchandise on account for $$11,500,000.$ Halifax's merchandise costs are $65\%$ of merchandise selling price. Aso during the year. customers returned $$450,000$ in sales for credit with $$250,000$ of those being returns pi merchandise soid prior to $2024,$ and the rest being merchandise sold during $2024.$ Sales returns, estimated to be $4\%$ of sales, are ecorded 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 soid during $2024,$ and $($c$)$ adjust the refund lability to its appropriate balance at yeat end.

What is the amount of the yearend refund liability after the adjusting entry is recorded?

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Required $1$

Required $2$

Prepare entries to $($a$)$ record actual returns in $2024$ of merchandise that was sold prior to $2024($b$)$ record actual returnstin $2024$ of merchandise that was sold during $2024,$ and $($c$)$ adjust the refund hability to ts appropriate balance at year end.

Required $2$