Sales returns Hadex Manulacturing allows its customers to retum merchandise for any reason up to 90 days after delivery and receive a credit to their dobounla. Af of Halfaxis sales are for credit (no canh is collected at the fime of sale). The company began 2024 with a refund liability of $300,000. During 2024, Halifax sold merchandise on account for $11,500,000. Halfox's merchandise costs are 65% of merchandise soting price. Nhe during the year, customers returned $450,000 in sales for credit, with $250,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Soles returns, ostimated to be 4% of sales, are recorded as an adfuting ontry at the end of the yoar. Required: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liablity to its appropriate balance at year end. 2. What is the amount of the year-end refund linbility afher the adjusting entry is recorded? What is the amount of the year-end refund liability after the adjusting entry is recorded