On July 10, 2022, Amodt Music sold CDs to retailers on account and recorded sales revenue of $700,000 (cost $560,000). Amodt grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2022, retailers returned CDs to Amodt and were granted credit of $78,000. Prepare Amodt’s journal entries to record 

(a) The sale on July 10, 2022, 

(b) $78,000 of returns on October 11, 2022, 

(c) Any entry necessary on October 31, 2022. 

Assume that Amodt prepares financial statement on October 31, 2022.