Please help me with this ACCT question. I need to see step-wise detailed solution of it to have a better understanding of the method used.

1. On November 20, 2017 Amazing Movie Co. sold DVDs to retailers on credit and recorded sales revenue of $700,000 (cost of $560,000). Amazing Music grants its customers the right to return DVDs for 3 months following delivery. Final payment is required at the end of the three months. Past experience indicates that there is a 70% probability that total returns will equal $105,000 (cost $84,000); a 20% probability that total returns will equal $140,000 (cost $112,000); and a 10% probability that total returns will equal $210,000 (cost $168,000). Retailers make returns during December as follows: December 6, 2017 - $88,000 returned (cost $70,400) Other pertinent information: Amazing Movie Co. uses the expected value approach to determine expected returns and its fiscal year end is December 31. It uses the perpetual system of inventory, which means that it updates the COGS and Inventory accounts each time a sale is made. The ending balance (after adjustment) in the Allowance for Bad Debt account is $10,000 and $12,000 in 2016 and 2017, respectively. Assuming these are the only transactions that occurred during the year and that all journal entries and adjusting entries are entered correctly, complete the missing values in Amazing Movie Co.'s 2017 Income Statement and Balance Sheet below. SHOW YOUR WORK! Income Statement for the fiscal period ended December 31, 2017 2016 2017 Net Revenue (less any applicable allowances) $510,000 $ Less: Cost of Goods Sold (400,000) $ = Gross Profit $110,000 $ Balance Sheet as of December 31, 2017 Current Assets 2016 2017 Cash $515,000 $515,000 Net Accounts Receivable (less any applicable allowances) 240,000** $ Inventory 1,000,000 $ Returned Inventory 0 (including estimated returns) $ ** Net Accounts Receivable is 2016 is computed as $250,000 in A/R less a $10,000 Allowance for Bad Debt