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 $380.000. During 2021. Halifax sold merchandise on account for $12,300,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $603,000 in sales for credit, with $333,000 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? Answer is complete but not entirely correct. 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 required for a transaction/event, select "No journal entry required" in the first account field.) No Year General Journal Debit Credit 1 2021 Refund liability 333.000 Accounts receivable 333.000 2 2021 233,100 Inventory Inventory-estimated returns SIS 233,100 3 2021 Sales returns 270.000 Accounts receivable 270.000 4 2021 189.000 Inventory Cost of goods sold ol 189,000 5 2021 568,000 Sales returns Refund liability 568.800 6 2021 0 397.600 Inventory-estimated returns Cost of goods sold 397.600 X Required? 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 915,000 S Pomurod 1