I cannot figure out the year-end adjusting entry for estimated returns and therefore cannot figure out the adjusting entry for the estimated return of merchandise to inventory. I know I keep coming up with $4,000 debit to sales returns and a credit of $4.000 to refund liability. Thanks!

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 $470,000. During 2021, Halifax sold merchandise on account for $13,200,000. Halifax's merchandise costs it 60% of merchandise selling price. Also during the year, customers returned $524,000 in sales for credit, with $289,000 ofthose being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns. estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. 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. 2. What is the amount ofthe year-end refund liability after the adjusting entry is recorded? Complete thls questlon by enterlng 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 rst account eld.) View transaction list Journal entry worksheet