Nathan
I see other replies have alerted you to a blocked AC drain. However, there is another possibility I suggest you may want to investigate.
Air is drawn into the Heater/AC unit from within a plenum in front of the windscreen. There is a plastic cowl under your wipers that covers this plenum. Volvo have hidden a couple of drains (well, at least they did no my 96 model 850R) inside this plenum. When they block, water accumulates in here and then sloshes across to the passenger side as you describe. When the water gets here it floods over the "seal" and falls into (and around) the heater asesembly. From here it can get into the passengar side footwell.
I had this happen to me recently and confirm the "sloshing" sound coming from what appears to be the upper reaches of the dash. This is prominent after rain or washing the car.
To access these drains you need to:
(1) undo the wiper retaining nuts and pull wipers off
(2) remove 5 retaining screws across the front of the plastic cowl
(3) disconnect the two external drains - in the engine bay - from the cowl
(4) pull the cowl forward to disengage it from the bottom lip of the screen, and then lift out.
When you are to this point, one drain will be apparent adjacent to the air inlet to the heater. The second will be partly hidden by the fuse box on the other side. Clean both and gently rinse through to confirm they are flowing freely.
While you are in there, you can directly remove any debris from the inlet to the fan. If you don't have a pollen filter, this is also the perfect time to fit one!
Note your AC drain is posibly also blocked or has come adrift from the point where it passes through the floor, but I suggest it would be prudent to also look at these plenum drains. Unfortunately, even if the AC drain is not blocked, it will not prevent leakage from the water that floods over from the plenum into the heater air inlet opening.
Hopefully you have not soaked your carpets (front/rear) as it can be a messy job to get them dried out.
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