Aamodt Music sold CDs to retailers and recorded sales revenue of $690,800. During 2014, retailers returned CDs to Aamodt and were granted credit of $52,100. Past experience indicates that the normal return rate is 15%.
Prepare Aamodt's entries to record (a) the $52,100 of returns and (b) estimated returns at December 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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No.
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Account Titles and Explanation
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Debit
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Credit
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(a)
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(b)
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