Help with journal entries? Prior to 2021

Exercise 7-8 Sales returns (L07-4) 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 2018 with an allowance for sales returns of $300,000. During 2018, 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 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? View transaction list View journal entry worksheet General Journal Debit Credit No 1 Year 2021 Refund liability Accounts receivable 2 2021 Inventory Inventory-estimated returns 2021 450,000 Sales returns Accounts receivable 450,000 2021 292,500 Inventory Cost of goods sold 292,500 2021 10,000 Sales returns Refund liability 10,000 2021 6,500 Inventory-estimated returns Cost of goods sold 6,500 Journal entry worksheet Record the actual sales return of merchandise sold prior to 2021. Note: Enter debits before credits. Year Debit Credit 2021 General Journal Refund liability Accounts receivable Record entry Clear entry View general journal Journal entry worksheet