Below is a series of related transactions between Siogo Shoes, a shoe wholesaler, and Sole Mates, a
Question:
Below is a series of related transactions between Siogo Shoes, a shoe wholesaler, and Sole Mates, a chain of retail shoe stores.
February 9 Siogo Shoes sold 195 pairs of hiking boots to Sole Mates, terms 2/10, n/30.
These boots cost Siogo Shoes $120 per pair and retail price was $150 per pair. February 12 United Express charged $90 to deliver this product to Sole Mates. These costs were split equally between the buyer and seller and were immediately paid in cash. February 13 Sole Mates returned 10 pairs of boots to Siogo Shoes because they were the wrong size. Siogo Shoes has given Sole Mates full credit for this comeback. February 19 Sole Mates paid off its debt to Siogo Shoes within the discount period. Both companies use a perpetual inventory system.
Necessary:
Record this series of actions in the general diary of Siogo Shoes. (The company records the sales at the gross selling price.)
b. Record this series of actions in the general journal of Sole Mates. (The company records goods purchased at net cost and uses an Inbound Shipping account to record shipping charges on inbound shipments.)
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello