80.2K

Verified Solution

Link Copied!

The following is a series of related transactions between Siogo Shoes, a shoe wholesaler, and Sole Mates a chain of rotall shoe stores. Fob. 8 Sogo Shoes sold Sole Mates 100 pairs of hiking boots on account, terms 1/10, n/30. The cost of these boots to Siogo Shoes was $60 per pair, and the sales price was $100 per pair. Feb. 12 Uniled Express charged $80 for delivering this merchandise to Sole Mates. These charges were splt eveny between the buyer and seller and were paid immediately in cash. Feb. 13 Sole Mates retumed 10 pairs of boots to Siogo Shoes because they were the wrong size. Siogo Shoes allowed Sole Mates full credit for this return. Fob. 19 Sole Mates paid the remaining balance due to Slogo Shoes within the discount period. Both companies use a perpetual inventory system. Instructlons a. Record this series of transactions in the general journal of Siogo Shoes. (The company records sales at gross sales price.) b. Record this series of transactions in the general joumal of Sole Mates. (The company records purchases of merchandise at net cost and uses a Transportation-in account to record transportation charges on inboud shipments.) Redstone Mill is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $40 million. At the end of year 1, accounts receivable were presented in the company's balance sheet as follows. written off, receivabies of specific accounts receivable were written off as uncollectible. Of these accounts accounts receivable indicated a $18,000 were subsequently collected. At the end of year 2 , an aging of accounts currently outstanding. Reed for a $150,000 allowance to cover possible fallure to collect the year-end

Answer & Explanation Solved by verified expert

See Answer