On July $10,2025,$ Carla Vista Music sold CDs to retailers on account and recorded sales revenue of $$752,000($cost $$609,120).$ Carla

Vista 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 $11,2025,$ retailers returned CDs to Carla Vista and were granted credit of $$73,700.$

Prepare Carla Vista's journal entries to record $($a$)$ the sale on July $10,2025,$ and $($b$)$ $$73,700$ of returns on October $11,2025,$ and on

October $31,2025.$ Assume that Carla Vista prepares financial statements on October $31,2025$ and uses the gross method. $($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 O for the amounts. List all debit entries before credit entries.$)$

$($a$)$

$($To record sales$)$

$($To record cost of goods sold$)$

$($b$)$

$($To record sales returns$)$

$($To record cost of goods returned$)$