Halifax Manufacturing allows its customers $to$ return merchandise for any reason $upto90$ days after delivery and receive a credit

their accounts. All $of$ Halifax's sales are for credit $(no$ cash $is$ collected $at$ the time $of$ sale$).$ The company began $2024$ with a refund

liability $of$ $$320,000.$ During $2024,$ Halifax sold merchandise $on$ account for $$11,700,000.$ Halifax's merchandise costs are $75\%of$

merchandise selling price. Also during the year, customers returned $$460,000in$ sales for credit, with $$255,000of$ those being

returns $of$ merchandise sold prior $to2024,$ and the rest being merchandise sold during $2024.$ Sales returns, estimated $tobe4\%of$

sales, are recorded $asan$ adjusting entry $at$ the end $of$ the year.

Required:

Prepare entries $to(a)$ record actual returns $in2024of$ merchandise that was sold prior $to2024$; $(b)$ record actual returns $in$

$2024of$ merchandise that was sold during $2024$; and $(c)$ adjust the refund liability $to$ its appropriate balance $at$ year end.

What $is$ the amount $of$ the vear$-$end refund liability after the adiusting entry $is$ recorded?