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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 2021 with a refund liability of $340,000. During 2021, Halifax sold merchandise on account for $11,600,000. Halifax's merchandise costs it 75% of merchandise selling price. Also during the year, customers returned $575,000 in sales for credit, with $319,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. 2 points Required: 1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. Note that (a), (b), and (c) have two journal entries each. 2. What is the amount of the year-end refund liability after the adjusting entry is recorded? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Note that you will have a total of 6 journal entries (i.e. 6 debits, 6 credits). (a), (b), and (c) each get two journal entries. Show less A Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Note that you will have a total of 6 journal entries (i.e. 6 debits, 6 credits). (a), (b), and (c) each get two journal entries. Show less No Year General Journal Debit Credit 1 2021 Refund liability 319,000 Accounts receivable 319,000 2 2 2021 239,250 Inventory Inventoryestimated returns 239,250 3 2021 256,000 Sales returns Accounts receivable 256,000 4 2021 192,000 Inventory Cost of goods sold 192,000 5 2021 5,000 Sales returns Refund liability 5,000 X 6 2021 Inventory-estimated returns Cost of goods sold Required 1 Required 2 >

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