Please I need to have this problem solved. I manage to solve half of it. But now I am stacked.

Please do not copy the answer from Chegg, because that is wrong.

On July 10, 2017, Pearl Music sold CDs to retailers on account and recorded sales revenue of $743,000 (cost $638,980). Pearl 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, 2017, retailers returned CDs to Pearl and were granted credit of $78,900. Prepare Pearl's journal entries to record (a) the sale on July 10, 2017, and (b) $78,900 of returns on October 11, 2017, and on October 31, 2017. Assume that Pearl prepares financial statement on October 31, 2017. (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.) N D o at Account Titles and Explanation . e Ju l. 1 ( 0, a 2 ) 0 1 7 Accounts Receivable Debit Credit 743000 Sales Revenue 743000 (To record sales) Cost of Goods Sold 638980 Inventory 638980 (To record cost of goods sold) ( O b ct ) . 1 1, 2 0 1 Sales Returns and Allowances 78900 7 Accounts Receivable (To record sales returns) (To record cost of goods returned) O ct . 3 1, 2 0 1 7 78900