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 $2024$ with a refund liability of $$420,000.$ During $2024,$ Halifax sold merchandise on account for $$12,700,000.$ Halifax's merchandise costs are $60\%$ of merchandise selling price. Also during the year, customers returned $$619,000$ in sales for credit, with $$342,000$ 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:

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.

What is the amount of the year$-$end refund liability after the adjusting entry is recorded?

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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 appronriate balance at year end.

Record the actual sales return of merchandise sold prior to $2024$

Record the cost of merchandise returned for goods sold prior to $2024$

Record the actual sales returns of merchandise sold during $2024$

Record the cost of merchandise for goods sold during $2024$

Record the year end adjusting entry for estimated returns

Record the adjusting entry for ghe estimated returns of merchandise to inventory