On July 1o, 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 noe sell in 3 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.

Debit Credt ) Jul. 10, 2017 (To record sales) (To record cost of goods sold ) Oct. 11, 2017 (To record sales returns) (To record cost of goods returned Oct. 31, 2017