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 $410,000. During 2021. Halifax sold merchandise on account for $12,600,000. Halifax's merchandise costs is 65% of merchandise selling price Also during the year, customers returned $491,000 in sales for credit with $271000 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 20210 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? No Year Debit Credit 2021 General Journal Refund liability Accounts receivable 271.000 271.000 2. 2021 Inventory Inventory-estimated returns 176.150 > 176.150 3 2021 Sales returns Accounts receivable 220,000 220,000 4 2021 Inventory Cost of goods sold 143,000 143.000 5 2021 Sales returns Refund liability O 132 000 132,000 5 2021 85 800 3 Inventory-estimated returns Cost of goods sold 85,800 Labs below Required Required 2 What is the amount of the year-end refund liability after the adjusting entry is recorded Ending balance in refund tobilly 123.000 3