Hallfax 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 2016 with an allowance for sales returns of $300,000. During 2016, Halifax sold merchandise on account for $11,500,000. This merchandise cost Halifax $7,475,000 (65% of selling prices). Also during the year, customers returned $450,000 in sales for credit. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare the entry to record the merchandise returns and the year-end adjusting entry for estimated returns. Note: Record the estimated returns at net amounts. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 DOM O W PX GUSO MacBook Pro w G H LI Journal entry worksheet 1 2 3 4 Record the actual sales returns. Note: Enter debits before credits. Year General Journal Debit Credit 2016 Record entry Clear entry View general journal MacBook Pro o Journal entry worksheet LOO - SOPXOLOS MacBook Pro Journal entry worksheet Record the year-end adjusting entry for estimated Note: Enter debits before credits Year 2016 General Journal Debit Credit Record entry Clear entry View general Journal a SOOS OBWPXOLSOS MacBook Pro 189@ CE Journal entry worksheet B&OO - TOPWPXODO MacBook Pro 2000@GOO F