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Halifax Manufacturing allows its customers to return merchandise for any reason up to 9 0 days after delivery and recelve a credit to thelr accounts.
Halifax Manufacturing allows its customers to return merchandise for any reason up to days after delivery and recelve a credit to
thelr accounts. All of Hallfax's sales are for credit no cash is collected at the time of sale The company began with a refund
Ilability of $ During Hallfax sold merchandise on account for $ Hallfax's merchandise costs are of
merchandise selling price. Also during the year, customers returned $ in sales for credit, with $ of those being returns
of merchandise sold prior to and the rest belng merchandise sold during Sales returns, estimated to be of sales, are
recorded as an adjusting entry at the end of the year.
Required:
Prepare entrles to a record actual returns in of merchandise that was sold prlor to ; b record actual returns in
of merchandise that was sold during ; and c adjust the refund llabillty to Its approprlate balance at year end.
What is the amount of the yearend refund IIability after the adjusting entry is recorded?
Complete this question by entering your answers in the tabs below.
Prepare entries to a record actual returns in of merchandise that was sold prior to ; b record actual returns in of
merchandise that was sold during ; and c adjust the refund liability to its appropriate balance at year end.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
View journal entry worksheet
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