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 $300,000. During 2021, Halifax sold merchandise on account for $11,500,000. Halifax's merchandise costs is 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with $250,000 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. Required 1 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 requi for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 2 3 6 Record the actual sales return of merchandise sold prior to 2021. Check 3 Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. (If no ent for a transaction/event, select "No journal entry required in the first account field.) 10 points View transaction list Book Journal entry worksheet 3 Record the cost of merchandise returned for goods sold prior to 2021 1 3 6 > References Note: te debits before credits Year 2021 General Journal Debit Credit Record entry Clear entry View general Journal MacBook Air SO SEE Fa PE A 3 $ 4 % 5 & 7 6 00 * 9 0 E R T Y U 0 P D F G H L C V B N. M Saved ses Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balam for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet sty MacBook Air "Seminar in Intl Accounting* - Course Room - Bb Collaborate QuickLau rcises Saved Help Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) reco merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance aty for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet GIV MacBook Air cises & Saved Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 202 merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate ba for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the year-end adjusting entry for estimated returns. Note: Enter debits before credits. Year General Journal Debit Credit 2021 Record entry Clear entry View general journal BE stv Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021;( merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balan for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet stv dI MacBook Air Check my work costs is 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with $250,000 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? nt Complete this question by entering your answers in the tabs below. int Fences Required 1 Required 2 What is the amount of the year-end refund liability after the adjusting entry is recorded? Ending balance in refund liability