Question: See attachment for full assignment. Brief Exercise 18-13 On July 10, 2017, Indigo Music sold CDs to retailers on account and recorded sales revenue of

See attachment for full assignment.

Brief Exercise 18-13

On July 10, 2017, Indigo Music sold CDs to retailers on account and recorded sales revenue of $743,000 (cost $609,260). Indigo 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 Indigo and were granted credit of $73,900.

Prepare Indigo's journal entries to record (a) the sale on July 10, 2017, and (b) $73,900 of returns on October 11, 2017, and on October 31, 2017. Assume that Indigo 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.)

No.

Date

Account Titles and Explanation

Debit

Credit

(a)

Jul. 10, 2017

(To record sales)

(To record cost of goods sold)

(b)

Oct. 11, 2017

(To record sales returns)

(To record cost of goods returned)

Oct. 31, 2017

See attachment for full assignment. Brief Exercise 18-13On July 10, 2017, Indigo

Brief Exercise 18-13 On July 10, 2017, Indigo Music sold CDs to retailers on account and recorded sales revenue of $743,000 (cost $609,260). Indigo 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 Indigo and were granted credit of $73,900. Prepare Indigo's journal entries to record (a) the sale on July 10, 2017, and (b) $73,900 of returns on October 11, 2017, and on October 31, 2017. Assume that Indigo 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.) No . Date Account Titles and Explanation (a) Jul. 10, 2017 (To record sales) (To record cost of goods sold) (b) Oct. 11, 2017 (To record sales returns) (To record cost of goods returned) Oct. 31, 2017 Debit Credit

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