P2) Nova Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery. All of Nova's sales are for credit. The company began 2021 with a refund liability of $330,000. During 2021, Nova sold merchandise on account for $11,800,000. Also, during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjustment entry at the end of the year. a) What is the amount of the year-end refund liability after adjusting is recorded? 3.307100=1al00 b) Nova's 2021 income statement would repont net sales of: P2) Nova Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery. All of Nova's sales are for credit. The company began 2021 with a refund liability of $330,000. During 2021, Nova sold merchandise on account for $11,800,000. Also, during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjustment entry at the end of the year. a) What is the amount of the year-end refund liability after adjusting is recorded? 3.307100=1al00 b) Nova's 2021 income statement would repont net sales of