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COTB Exercise $7-3($Static$)$ Sales returns $[$LO$7-4]$

A company allows its customers to return merchandise for any reason up to $90$ days after delivery and receive a credit to their accounts. All of the company's sales are for credit $($no cash is collected at the time of sale$).$ The company began the current year with a refund liability of $$300,000.$ During the current year, the company sold merchandise on account for $$11,500,000.$ The company's merchandise costs are $65\%$ of merchandise selling price. Also during the year, customers returned $$450,000$ in sales for credit, with $$250,000$ of those being returns of merchandise sold prior to the current year, and the rest being merchandise sold during the current year. Sales returns, estimated to be $4\%$ of sales, are recorded as an adjusting entry at the end of the year.

Required:

Prepare entries to $($a$)$ record actual returns in the current year of merchandise that was sold prior to the current year; $($b$)$ record actual returns in the current year of merchandise that was sold during the current year; and $($c$)$ adjust the refund liability to its appropriate balance at year end.

What is the amount fif the year$-$end refund liability after the adjusting entry is recorded?