Using the information in RE17 13, what journal entry would CoolShoes make to record the sale of 100 pairs of RF17 shoes on account to a retailer?
In exercise
CoolShoes sells its elite tennis shoes to sports retailers throughout the country. When introducing its new RF17 shoes that sell for $ 125 per pair, the company includes a $ 15 rebate form. The rebate form can be used when the customer ultimately purchases the shoes. CoolShoes sells 100 pairs of shoes and estimates that 80% of the rebate forms will be returned by customers for a rebate. Determine the transaction price that CoolShoes should use when recognizing revenue from sale of one pair of the RF17 shoe.