Martinez Shoe Sales has a January 31 fiscal year-end. At the start of the year, Martinez had 250 pairs of shoes in its Inventory at a cost of $30 per pair. Assume that the oldest inventory is sold first. Martinez uses a perpetual inventory system and estimates returns of 5% on all sales. During the month of February 2022, the following transactions took place: Feb. 4 Purchased 1,000 pairs for $20 each from Marigold Corp. on account, terms n/30. 11 Returned 100 pairs to Marigold for $2,000 credit because the shoes were the wrong size. 13 Sold 210 pairs for $90 each to Shoes for Kids, terms n/30. 18 Granted credit of $1,080 to Shoes for Kids for the return of 12 pairs that were the wrong colour. The shoes were restored to inventory. 26 Paid Marigold the amount owing. 28 Received payment in full from the Shoes for Kids. Record the February transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round Cost of goods sold and inventory return answers to 2 decimal places, e.g. 1252.50)

Name: Martinez Shoe Sales has a January 31 fiscal year-end. At the start of
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Description: Martinez Shoe Sales has a January 31 fiscal year-end. At the start of the year, Martinez had 250 pairs of shoes in its Inventory at a cost of $30 per pair. Assume that the oldest inventory is sold first. Martinez uses a perpetual inventory system and

College Accounting (Book Only): A Career Approach

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ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

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Martinez Shoe Sales has a January 31 fiscal year-end. At the start of the year, Martinez had 250 pairs of shoes in its Inventory at a cost of $30 per pair. Assume that the oldest inventory is sold first. Martinez uses a perpetual inventory system and estimates returns of 5% on all sales. During the month of February 2022, the following transactions took place:

Feb.	4	Purchased 1,000 pairs for $20 each from Marigold Corp. on account, terms n/30.
	11	Returned 100 pairs to Marigold for $2,000 credit because the shoes were the wrong size.
	13	Sold 210 pairs for $90 each to Shoes for Kids, terms n/30.
	18	Granted credit of $1,080 to Shoes for Kids for the return of 12 pairs that were the wrong colour. The shoes were restored to inventory.
	26	Paid Marigold the amount owing.
	28	Received payment in full from the Shoes for Kids.

Record the February transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round Cost of goods sold and inventory return answers to 2 decimal places, e.g. 1252.50)

(Cost of goods sold recorded)
(Return of shoes)
(Return of shoes, assuming goods are resaleable and
returned to inventory)
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entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round Cost of
goods sold and inventory return answers to 2 decimal places, e.g. 1252.50)
Date
Account Titles and Explanation
Debit
Credit
(Sale of Shoes)
(Cost of goods sold recorded)

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