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 $460,000. During 2021 , Halifax sold merchandise on account for $13,100,000. Halifax's merchandise costs is 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 2021 , and the rest being merchandise sold during 2021. 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 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? Journal entry worksheet 56 Record the actual sales return of merchandise sold prior to 2021. Note: Enter debits before credits. Journal entry worksheet 6 Record the cost of merchandise returned for goods sold prior to 2021 . Note: Enter debits before credits. Journal entry worksheet 1 6 Record the actual sales return of merchandise sold during 2021. Note: Enter debits before credits. Journal entry worksheet 1 Record the cost of merchandise returned for goods sold during 2021. Note: Enter debits before credits. Journal entry worksheet Record the year-end adjusting entry for estimated returns. Note: Enter debits before credits. Journal entry worksheet Record the adjusting entry for the estimated return of merchandise to inventory. Note: Enter debits before credits. What is the amount of the year-end refund liability after the adjusting entry is recorded