On July 10, 2017, Bridgeport Music sold CDs to retailers on account and recorded sales revenue of $694,000 (cost $527,440). Bridgeport grants the right to return CDs that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11,2017, retailers returned CDs to Bridgeport and were granted credit of $81,700.

Prepare Bridgeport journal entries to record (a) the sale on July 10, 2017, and (b) $81,700 of returns on October 11, 2017, and on October 31,2017. Assume that Bridgeport prepares financial statement on October 31, 2017.

2017 To record sales) To record cost of goods sold) )Oct 11. 20 To record sales returns) To record cost of goods retuned) 2445