Rockland Shoe Company records Sales Returns and Allowances and Sales Discounts as contra-revenues. Complete the following table, indicating the amount and direction of effect (+ for increase, - for decrease) of each transaction on each item reported in Rockland's income statement prepared for internal use Be sure to total the effects. July 12 Rockland sold merchandise to Kristina Zee at its factory store. Kristina paid for the 545e purchase in cash. The goods cos Rockland $240. 15 Sold merchandise to Shoe Express ata selling price of $6,500, ith terms 3/1e, n/3e. Rockland's cost was $3,00. 20 Collected cash due fron Shoe Express. 21 Sold merchandise to Fleet Foot Co. at a selling price of $2,300, with terms 2/10, /30. Rockland's cost was $1,380. 23 Fleet Foot Co. returned $1,150 of shoes and promised to pay for the renaining goods in August. The returned shoes were in perfect condition and had cost Rockland $690. Transaction Date: July 12 July 15 July 20 July 21 July 23 Totals Sales Revenues Sales Retums and Allowances Sales Discounts 450 6,500 2,300 9.250 1.150 1,150 195 195 Net Sales 240 210 3.900 2.600 Cost of Goods Sold 1.380 5.520 Gross Profit 920 3,730

Question
Rockland Shoe Company records Sales Returns and Allowances and Sales Discounts as contra-revenues. Complete the following
table, indicating the amount and direction of effect (+ for increase, - for decrease) of each transaction on each item reported in
Rockland's income statement prepared for internal use Be sure to total the effects.
July 12 Rockland sold merchandise to Kristina Zee at its factory store. Kristina paid for the 545e purchase in cash. The goods cos
Rockland $240.
15 Sold merchandise to Shoe Express ata selling price of $6,500, ith terms 3/1e, n/3e. Rockland's cost was $3,00.
20 Collected cash due fron Shoe Express.
21 Sold merchandise to Fleet Foot Co. at a selling price of $2,300, with terms 2/10, /30. Rockland's cost was $1,380.
23 Fleet Foot Co. returned $1,150 of shoes and promised to pay for the renaining goods in August. The returned shoes were in
perfect condition and had cost Rockland $690.
Transaction Date:
July 12
July 15
July 20
July 21
July 23
Totals
Sales Revenues
Sales Retums and Allowances
Sales Discounts
450
6,500
2,300
9.250
1.150
1,150
195
195
Net Sales
240
210
3.900
2.600
Cost of Goods Sold
1.380
5.520
Gross Profit
920
3,730
Expand
Transcribed Image Text

Rockland Shoe Company records Sales Returns and Allowances and Sales Discounts as contra-revenues. Complete the following table, indicating the amount and direction of effect (+ for increase, - for decrease) of each transaction on each item reported in Rockland's income statement prepared for internal use Be sure to total the effects. July 12 Rockland sold merchandise to Kristina Zee at its factory store. Kristina paid for the 545e purchase in cash. The goods cos Rockland $240. 15 Sold merchandise to Shoe Express ata selling price of $6,500, ith terms 3/1e, n/3e. Rockland's cost was $3,00. 20 Collected cash due fron Shoe Express. 21 Sold merchandise to Fleet Foot Co. at a selling price of $2,300, with terms 2/10, /30. Rockland's cost was $1,380. 23 Fleet Foot Co. returned $1,150 of shoes and promised to pay for the renaining goods in August. The returned shoes were in perfect condition and had cost Rockland $690. Transaction Date: July 12 July 15 July 20 July 21 July 23 Totals Sales Revenues Sales Retums and Allowances Sales Discounts 450 6,500 2,300 9.250 1.150 1,150 195 195 Net Sales 240 210 3.900 2.600 Cost of Goods Sold 1.380 5.520 Gross Profit 920 3,730

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