Halifax Manufacturing allows its customers to return merchandise for any reason and recelve 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 $460,000. During 2024, Halifax sold merchandise on account for $13,100,000. Halifox's merchandise costs are 60% of merchandise selling price. Also during the year, customers returned $650,000 in sales for credit, with $358,000 of those being returns of merchandise sold prior to 2024 , and the rest being merchandise sold during 2024. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. 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 sold during 2024; 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? Coaplete this question by entering your answers in the tabs belew. and (c) adjust the refund liatility to iss approprtane bulance at year end. 1 Record the acrial sales retain of merchandie sold prior to 2024 2 Record the cost of merchandise recurmed for coods sold prior io 2024. 7 Recoed the actual sales reluere of inerchandise sold durtog 2004. 4 Hecord the cost of merchandise ernumbed for goods sold daring 2024 I Recoed the yearend adjating entry for estimated returns. 6. Ricond the dpauting entry for the estimatid reain of necchandise io inventary. Share ins 4 Halifax Manufacturing allows its customers to return merchandise for any reason and recelve 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 $460,000. During 2024, Halifax sold merchandise on account for $13,100,000. Halifox's merchandise costs are 60% of merchandise selling price. Also during the year, customers returned $650,000 in sales for credit, with $358,000 of those being returns of merchandise sold prior to 2024 , and the rest being merchandise sold during 2024. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. 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 sold during 2024; 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? Coaplete this question by entering your answers in the tabs belew. and (c) adjust the refund liatility to iss approprtane bulance at year end. 1 Record the acrial sales retain of merchandie sold prior to 2024 2 Record the cost of merchandise recurmed for coods sold prior io 2024. 7 Recoed the actual sales reluere of inerchandise sold durtog 2004. 4 Hecord the cost of merchandise ernumbed for goods sold daring 2024 I Recoed the yearend adjating entry for estimated returns. 6. Ricond the dpauting entry for the estimatid reain of necchandise io inventary. Share ins 4
