On July 10, 2020, Tamarisk Music sold CDs to retailers on account and recorded sales revenue of $657,000 (cost $538,740). Tamarisk 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, 2020, retailers returned CDs to Tamarisk and were granted credit of $84,200.Prepare Tamarisk’s journal entries to record (a) the sale on July 10, 2020, and (b) $84,200 of returns on October 11, 2020, and on October 31, 2020. Assume that Tamarisk prepares financial statement on October 31, 2020. (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.DateAccount Titles and ExplanationDebitCredit(a) enter an account title to record sales on July 10, 2017enter a debit amountenter a credit amount enter an account title to record sales on July 10, 2017enter a debit amountenter a credit amount (To record sales) enter an account title to record cost of goods sold on July 10, 2017enter a debit amountenter a credit amount enter an account title to record cost of goods sold on July 10, 2017enter a debit amountenter a credit amount (To record cost of goods sold) (b) enter an account title to record sales returns on October 11, 2017enter a debit amountenter a credit amount enter an account title to record sales returns on October 11, 2017enter a debit amountenter a credit amount (To record sales returns) enter an account title to record cost of goods returned on October 11, 2017enter a debit amountenter a credit amount enter an account title to record cost of goods returned on October 11, 2017enter a debit amountenter a credit amount (To record cost of goods returned) enter an account title to record the transaction on October 31, 2017enter a debit amountenter a credit amount enter an account title to record the transaction on October 31, 2017enter a debit amountenter a credit amount eTextbook and Media On July 10, 2020, Tamarisk Music sold CDs to retailers on account and recorded sales revenue of $657,000 (cost $538,740). Tamariskgrants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is15%. By October 11, 2020, retailers returned CDs to Tamarisk and were granted credit of $84,200.Prepare Tamarisk's journal entries to record (a) the sale on July 10, 2020, and (b) $84,200 of returns on October 11, 2020, and onOctober 31, 2020. Assume that Tamarisk prepares financial statement on October 31, 2020. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for theamounts.)DateAccount Titles and Explanation(To record sales)Save for Later(To record cost of goods sold)(To record sales returns)(To record cost of goods returned)eTextbook and MediaList of AccountsDebitAttempts: 0 of 3 usedCreditSubmit Answer

Sales revenue = $657,000Cost of goods sold = $538,740Ratio of cost of goods sold to Sales revenue =…

Answered: On July 10, 2020, Tamarisk Music sold…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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On July 10, 2020, Tamarisk Music sold CDs to retailers on account and recorded sales revenue of $657,000 (cost $538,740). Tamarisk 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, 2020, retailers returned CDs to Tamarisk and were granted credit of $84,200.

Prepare Tamarisk’s journal entries to record (a) the sale on July 10, 2020, and (b) $84,200 of returns on October 11, 2020, and on October 31, 2020. Assume that Tamarisk prepares financial statement on October 31, 2020. (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.	Account Titles and Explanation	Debit	Credit
(a)	enter an account title to record sales on July 10, 2017	enter a debit amount	enter a credit amount
	enter an account title to record sales on July 10, 2017	enter a debit amount	enter a credit amount
	(To record sales)
	enter an account title to record cost of goods sold on July 10, 2017	enter a debit amount	enter a credit amount
	enter an account title to record cost of goods sold on July 10, 2017	enter a debit amount	enter a credit amount
	(To record cost of goods sold)
(b)	enter an account title to record sales returns on October 11, 2017	enter a debit amount	enter a credit amount
	enter an account title to record sales returns on October 11, 2017	enter a debit amount	enter a credit amount
	(To record sales returns)
	enter an account title to record cost of goods returned on October 11, 2017	enter a debit amount	enter a credit amount
	enter an account title to record cost of goods returned on October 11, 2017	enter a debit amount	enter a credit amount
	(To record cost of goods returned)
	enter an account title to record the transaction on October 31, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on October 31, 2017	enter a debit amount	enter a credit amount

eTextbook and Media

On July 10, 2020, Tamarisk Music sold CDs to retailers on account and recorded sales revenue of $657,000 (cost $538,740). Tamarisk
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, 2020, retailers returned CDs to Tamarisk and were granted credit of $84,200.
Prepare Tamarisk's journal entries to record (a) the sale on July 10, 2020, and (b) $84,200 of returns on October 11, 2020, and on
October 31, 2020. Assume that Tamarisk prepares financial statement on October 31, 2020. (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.)
Date
Account Titles and Explanation
(To record sales)
Save for Later
(To record cost of goods sold)
(To record sales returns)
(To record cost of goods returned)
eTextbook and Media
List of Accounts
Debit
Attempts: 0 of 3 used
Credit
Submit Answer

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