Prepare the journal entries for the following  scenario.
 

Mitchell Inc. sold basketballs with a cost of $625,000 to retailers on account and recorded sales revenue of $947,000 on May 1, 2021. Mitchell Inc. allows retailers to return basketballs that do not sell in 10 months after sale. Past experience shows that the normal return rate is 10%. By December 1, 2021, retailers returned basketballs to Mitchell and were granted credit of $78,000. Prepare Mitchell's necessary journal entries for May 1. December 1, and December 31, assuming Mitchell prepares financial statements on December 31 of each year. Worth 24 points.