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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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