- Your answer is partially correct. Flint Shoe Sales has a January 31 fiscal year-end. At the start of the year, Flint had 230 pairs of shoes in its inventory at a cost of $30 per pair. Assume that the oldest inventory is sold first. Flint 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 11 13 18 Purchased 920 pairs for $20 each from Pina Colada Corp, on account terms n/30. Returned 92 pairs to Pina Colada for $1.840 credit because the shoes were the wrong size. Sold 210 pairs for $90 each to Shoes for Kids, terms /30. Granted credit of $720 to Shoes for Kids for the return of 8 pairs that were the wrong colour. The shoes were restored to inventory. Paid Pina Colada the amount owing. Received payment in full from the Shoes for kids. 26 28 Date Account Titles and Explanation Debit Feb. 4 Credit Accounts Payable 18400 Inventory 18400 Feb. 11 Accounts Payable 1840 Inventory 1840 Feb. 13 Accounts Receivable 18900 Sales 18900 Cost of Goods Sold 6300 (Sale of Shoes) Sales Returns and Allowances Feb 18 720 Accounts Receivable 240 240 Inventory (Cost of goods sold recorded) M Feb. 26 Accounts Payable 16560 Cash 16560 ME TED. IO SU REUTTIST HIWOT cus Accounts Recelvable 240 240 Inventory (Cost of goods Sold recorded) Accounts Payable Feb. 26 16560 Cash 16560 (Return of shoes) Feb. 28 Accounts Receivable 18180 cash 18180 (Return of shoes, assuming goods are resaleable and returned to inventory) C M eTextbook and Media