lalifax 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 sale returns of $300,000. During 2016, Halifax sold merchandise on account for $11,500,000. This merchandise cost Halifax $7,475,000 (659s of selling prices). Also during the year, customers returned $450,000 in sales for credit. Sales returns are estimated to be 4% of sales. Required 1. Assume they didn't record the returns as a year end adjusting entry and record expected returns at the time of sale. 2. Prepare the entry to record the merchandise returns and the year-end adjusting entry for estimated returns. 3. What is the amount of the year end allowance for sales returns after the adjusting entry is recorded? 1. Assume they didn't record the returns as a year-end adjusting entry and 2. Prepare the entry to record the merchandise returns and the year o record expected returns at the time of sale adjusting entry for estimated returns. Total expected returns Sale: : Estimate Returns Year End Adjusting Entry Returns PracticeRevenue Recognition Practice Recognition Practice 2