On July $10,2025,$ Sheridan Music sold CDs to retailers on account and recorded sales revenue of $$656,000($cost $$485,440).$ Sheridan

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 Sheridan and were granted credit of $$70,700.$

Prepare Sheridan's journal entries to record $($a$)$ the sale on July $10,2025,$ and $($b$)$ $$70,700$ of returns on October $11,2025,$ and on

October $31,2025.$ Assume that Sheridan prepares financial statements on October $31,2025.($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. List all debit entries before credit entries.$)$

No$.$

Date

Account Titles and Explanation

Debit

Credit

$($a$)$

$($To record sales$)$

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

$($b$)$

$($To record sales returns$)$