The following is a series of related transactions between Siogo Shoes, a shoe wholesaler, and Sole Mates, a chain of retail shoe stores: Feb.9 Siogo 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 United Express charged $80 for delivering this merchandise to Sole Mates. These charges were split evenly between the buyer and seller and were paid immediately in cash. Feb.13 Sole Mates returned 10 pairs of boots to Siogo Shoes because they were the wrong size. Siogo Shoes allowed Sole Mates full credit for this return. Feb.19 Sole Mates paid the remaining balance due to Siogo Shoes within the discount period. Both companies use a perpetual inventory system. Instructions a. Record this series of transactions in the general journal of Siogo Shoes. (The company records sales at gross sales price.) (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) b. Record this series of transactions in the general journal of Sole Mates. (The company records purchases of merchandise at net cost and uses a Transportation-in account to record transportation charges on inbound shipments.) (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
. Record this series of transactions in the general journal of Siogo Shoes. (The company records sales at gross sales price.) (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
| (A) | |||
| Date | Particular | Debit in $ | Credit in $ |
| 9-Feb | Accounts Receivable (Sole Mates) | 10000 | |
| Sales | 10000 | ||
| (Sold merchandise on account) | |||
| 9 | Cost of Goods Sold | 6000 | |
| Inventory | 6000 | ||
| (To record cost of merchandise sold) | |||
| 12 | Delivery Expense | 80 | |
| Cash | 80 | ||
| (Paid delivery charges on outbound shipment.) | |||
| 13 | Sales | 1000 | |
| Accounts Receivable (Sole Mates) | 1000 | ||
| (Customer returned merchandise) | |||
| 13 | Inventory | 600 | |
| Cost of Goods Sold | 600 | ||
| (Reduce cost of goods sold for cost of merchandise returned) |
|||
| 19 | Cash | 8910 | |
| Sales Discount | 90 | ||
| Accounts Receivable (Sole Mates) | 9000 | ||
| Collected amount due. |
b. Record this series of transactions in the general journal of Sole Mates. (The company records purchases of merchandise at net cost and uses a Transportation-in account to record transportation charges on inbound shipments.) (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
| (B) | |||
| 9 | Inventory | 9900 | |
| Accounts Payable (Siogo Shoes) | 9900 | ||
| (Purchased boots) | |||
| 12 | Transportation-in | 80 | |
| Cash | 80 | ||
| (Paid transportation charge on inbound shipment) | |||
| 13 | Accounts Payable (Siogo Shoes) | 990 | |
| Inventory | 990 | ||
| Returned pairs of boots to supplier | |||
| 19 | Accounts Payable (Siogo Shoes) | 8910 | |
| Cash | 8910 | ||
| Paid within discount period balance owed to Siogo Shoes | |||
