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 Hallfax'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 $450,000. During 2018, Halifax sold merchandise on account for $13,000,000. This merchandise cost Halifax $8,450,000 (65% of selling prices). Also during the year, customers returned $514,000 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 an entry to record actual merchandise returns as they occur (not adjusting the allowance for sales returns), and then record a 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an entry to record actual merchandise returns as they occur (not adjusting the allowance for sales returns), and then record a year-end entry to adjust the allowance for sales returns to its appropriate balance. (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 Record the actual sales returns. Note: Enter debits before credits Debit Credit Year General Journal 7 Homework Saved Complete this question by entering your answers In the tabs below. Required 1 Required 2 Prepare an entry to record actual merchandise returns as they occur (not adjusting the all year-end entry to adjust the allowance for sales returns to Its appropriate balance. (If no "No journal entry requlred" in the first account field.) 36 View transaction list Import a new list 1 Record the actual sales returns. 2 Record the return of merchandise to stock. 3 Record the year-end adjusting entry for estimated returns. Record the adjusting entry for the estimated return of merchandise to inventory. 4 Credit Note :" journal entry has been entered View general jour Record entry Clear entry Prev5 of 10 Hallfax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a cr their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with an a for sales returns of $450,000. During 2018, Halifax sold merchandise on account for $13,000,000. This merchandise cost Hall $8,450,000(65% of selling prices Also during the year, customers returned $514,000 in sales for credit. Sales returns, estim be 4% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare an entry to record actual merchandise returns as they occur (not adjusting the allowance for sales returns), and the a 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 what, s the amount of the year ed llownse for salesretums ater the adusting entry s,recorded? Ending balance in allowance account Required 1
