On July 10, 2020, Shamrock Music sold CDs to retailers on account and recorded sales revenue of $740,000 (cost $621,600). Shamrock 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, 2020, retailers returned CDs to Shamrock and were granted credit of $85,500. Prepare Shamrock's journal entries to record (a) the sale on July 10, 2020, and (b) $85,500 of returns on October 11, 2020, and on October 31, 2020. Assume that Shamrock prepares financial statement on October 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jul. 10, 2020 Accounts Receivable Sales Revenue (To record sales) Cost of Goods Sold Repossessed Merchandise (To record cost of goods sold) Oct. 11, 2020 Sales Returns and Allowances Oct. 31, 2020 Accounts Receivable (To record sales returns) Returned Inventory Cost of Goods Sold (To record cost of goods returned) No Entry No Entry Debit 740000 621600 85500 Credit 740000 621600 85500