Question 2.

On May 10, 2020, Marin Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $1,990 on July 15,2020 . The cost of the goods is $1,310. Marin delivers the product to Greig on June 15,2020 , and receives payment on July 15, 2020. Prepare the journal entries for Marin related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the amount is entered. Do not indent manuallv. If no entrv is reauired. select "No entrv" for the account titles and enter 0 for the amounts.) On July 10, 2020, Blossom Music sold CDs to retailers on account and recorded sales revenue of $730,000 (cost $635,100). Blossom 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 Blossom and were granted credit of $80,400. Prepare Blossom's journal entries to record (a) the sale on July 10,2020 , and (b) $80,400 of returns on October 11,2020 , and on October 31, 2020. Assume that Blossom 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 0 for the amounts.) No. Date (a) (b) On May 10, 2020, Marin Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $1,990 on July 15,2020 . The cost of the goods is $1,310. Marin delivers the product to Greig on June 15,2020 , and receives payment on July 15, 2020. Prepare the journal entries for Marin related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the amount is entered. Do not indent manuallv. If no entrv is reauired. select "No entrv" for the account titles and enter 0 for the amounts.) On July 10, 2020, Blossom Music sold CDs to retailers on account and recorded sales revenue of $730,000 (cost $635,100). Blossom 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 Blossom and were granted credit of $80,400. Prepare Blossom's journal entries to record (a) the sale on July 10,2020 , and (b) $80,400 of returns on October 11,2020 , and on October 31, 2020. Assume that Blossom 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 0 for the amounts.) No. Date (a) (b)