Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to :heir accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with an allowance for sales returns of $380,000. During 2018 , Halifax sold merchandise on account for $12,300,000. This merchandise cost Halifax $8,610,000 (70\% of selling prices). Also during the year, customers returned $603,000 in sales for credit. Sales returns, estimated to pe 5% of sales, are recorded as an adjusting entry at the end of the year. Required: I. Prepare an entry to record actual merchandise returns as they occur (not adjusting the allowance for sales returns), and then record year-end entry to adjust the allowance for sales returns to its appropriate balance. 2. What is the amount of the year-end allowance for sales returns after the adjusting entry is recorded