On July 10, 2017, Amodt Music sold CDs to retailers on account for a selling price of $700,000 (cost $560,000). Amodt grants the right to return CDs that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2017, retailers returned CDs to Amodt and were granted credits of $78,000. Prepare Amodt's journal entries to record
(a) The sale on July 10, 2017, and
(b) The $78,000 of actual returns on October 10, 2017. The company follows IFRS.