Halifax Manufacturing allows its customers to return merchandise for any reason and receive a credit to their accounts. All of Halifax$$s sales are for credit $($no cash is collected at the time of sale$).$ The company began $2024$ with a refund liability of $$300,000.$ During $2024,$ Halifax sold merchandise on account for $$11,500,000.$ Halifax's merchandise costs it $65\%$ of merchandise selling price. Also during the year, customers returned $$450,000$ in sales for credit, with $$250,000$ of those being returns of merchandise sold prior to $2024,$ 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.