Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

Halifax Manufacturing allows its customers to return
You can return any item for any reason within 90 days of delivery and earn points
They will be credited to their account. Halifax only sells on credit.
Received when sold. In 2021, the company launched
There is a $420,000 refund policy. 2021 Halifax Sale Items
This account is $12,700,000. Halifax commodity prices up 60%
The selling price of the item. There are also repeat customers within the year
Credit sales totaled $619,000, of which $342,000 were returns
Items sold before 2021, the rest are merchandise
A total of 500,000 units will be sold in 2021. Estimated return on sales of 5%
Post as year-end adjustment

Mandatory items:

1. Record the actual income in the entry
In 2021, items sold by 2021 will set a (b) record
2021 actual returns for items sold between 2021 and 2021
c) Adjust chargeback liability to make it the correct balance
end of the year.
2. Is there a maximum amount for year-end refunds?
What happens to the liability when an adjusted booking is made?

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