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Halifax Manufacturng allows its customers to return merchandise for any reason up to 90 days after dellvery and recelve a credit to heir accounts. All of Halfax's sales are for credit (no cash is coltected at the time of sale). The company began 2024 with a refund labairy of $400,000. During 2024, Halfax sold merchandise on account for $12,500,000. Halfax's merchandise costs are 70\% of merchandise selling price. Also during the year, customers retumed $613,000 in sales for credit, with $338,000 of those being returns pi merchandise sold prior to 2024, and the rest being merchandise sold during 2024 . Sales returns, estimated to be 5% of sales, are recorded as an adjusung entry at the end of the year. Requlred: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold pror to 2024 ; (b) record actual returns in 2024 of merchandise thot was sold during 2024, and (c) adjust the refund liabitity to its appropriate balance at year end. 2. What is the amount of the year-end refund llability after the adjusting entry is recorded? Cemplete this questian by entering your answers in the tabs below. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prier to 2024:(b) record actual returns in 2024 of merchandist that was sold during 20241 and (c) adjust the refund liability to its appropriate balance at year end. Wotei if co entry is required far a transaction/event. select "No journal entry required" in the first account field. Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after dellvery and receive a credit to thelr accoumts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund Ilability of $400,000. During 2024, Halifax sold merchandise on account for $12,500,000. Halifax's merchandise costs are 70% of merchandise selling price. Also during the year, customers retumed $613,000 in sales for credit, with $338,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024 . Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. Requlred: 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 llability to its appropriate balance at year end 2. What is the amount of the year-end refund liability after the adjusting entry is recorded? Complete this question by entering your answers in the tabs below. What is the amount of the year-end refund liability after the adjusting entry is recorded

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