On July 10, 2025, Wildhorse Music sold CDs to retailers on account and recorded sales revenue of $657,000 (cost $538,740). Wildhorse 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 Wildhorse and were granted credit of $84,200. Prepare Wildhorse's journal entries to record (a) the sale on July 10, 2025, and (b) $84,200 of returns on October 11, 2025, and on October 31, 2025. Assume that Wildhorse 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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation (To record sales) (To record cost of goods sold) (To record sales returns) Debit Credit 10 10 10

Wally Co. began selling merchandise on November 1, 2022. The company offers a 50-day warranty for defective merchandise. Based on prior experience with similar merchandise, Wally Co. predicts that 2.80% of the units sold will encounter a fault within the warranty period, with a replacement or repair of a damaged unit costing an average of $30. In November, Wally Co. sold 25,000 units and 400 defective units were returned. In December, Wally Co. sold 32,000 units and 544 defective units were returned. The actual cost of replacing the defective units was $38,500. Prepare a journal entry to accrue for the estimated warranty costs for the November and December sales at December 31, 2022. Prepare one summary journal entry at December 31, 2022, to record the cost of replacing the defective merchandise returned during November and December. What amounts will be included in Wally Co.’s 2022 income statement and balance sheet at December 31, 2022, with regard to the warranty? Show steps…

Presented below are selected transactions of Pearl Restaurant for the month ending August 31, 2025. Pearl sells 80 gift cards at $78 per gift card and 55 of the gift cards are redeemed by year end. It is estimated that 10 of the gift cards will not be redeemed b. Pearl accepted a reservation for its private dining room for a rehearsal dinner in September. It received a security deposit of $300, which will be returned after the dinner is held. Prepare entries for the Pearl transactions. Of no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List oll debit entries before credit entries. Round Intermediate calculations to 2 decimal places, eg. 15.25% and final answers to O decimal places, eg. 5.125) Transaction Account Titles and Explanation Debit Date (To record the sale of 80 gift cards)…

During December, Far West Services makes a $3,600 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. (Note: the sales tax amount is in addition to the credit sale amount.) Record sales and sales tax payable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)