Current Attempt in Progress On July 10,2020, Waterway Music sold CDs to retailers on account and recorded sales revenue of $647,000 (cost $517,600 ). Waterway 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 Waterway and were granted credit of $73,900. Prepare Waterway's journal entries to record (a) the sale on July 10,2020, and (b) $73,900 of returns on October 11, 2020, and on October 31, 2020. Assume that Waterway 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.) Sales Revenue (To record sales) Cost of Goods Sold (To record cost of goods sold) Oct. 11,2020 (To record sales returns) Repossessed Merchandise (To record cost of goods returned) Oct 31,2020 No Entry 0 No Entry 0
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