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Halifox Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and recelve a credit to their accounts. All

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Halifox Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and recelve a credit to their accounts. All of Halifax's sales are for credit (no cosh is collected at the time of sale). The company began 2024 with a refund liability of $300,000. During 2024, Halifax sold merchandise on account for $11,500,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with $250,000 of those being returns, of merchandise sold prior to 2024 , and the rest being merchandise sold during 2024 . Sales returns, estimated to be 4% of sales, ore recorded as an adjusting entry at the end of the yeor. Required: 1. Prepare entries to (o) record actual returns in 2024 of merchandise that was sold prior to 2024, (b) record actual returns in 202 of merchandise that was sold during 2024; and (c) adjust the refund lability to its appropriate balance at year end. 2. What is the amount of the year-end refund liability after the adjusting entry is recorded? Complete this question by entering your answers in the tabs below. 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Journal entry worksheet 56 Record the actual sales returns of merchandise sold prior to 2024. Note: Enter debits belore credits. Journal entry worksheet 6 Record the cost of merchandise returned for goods sold prior to 2024. Note: Enter debits before credits. Journal entry worksheet 6 Record the actual sales returns of merchandise sold during 2024. Note: Enter debits belore credits. Journal entry worksheet Record the cost of merchandise returned for goods sold during 2024. 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 returns of merchandise to inventory. Note: Enter debits before credits

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