On July 10, 2019, 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, 2019, 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, 2019, (b) $78,000 of returns on October 11, 2019, and (c) any entry necessary on October 31, 2019. Assume that Amodt prepares financial statement on October 31, 2019.