Sole Ware, a shoe retailer, sells boots in different styles. In early March, the

Question

Sole Ware, a shoe retailer, sells boots in different styles. In early March, the company started selling a new line of boots, Kickers, to customers for $140 per pair. When a customer purchases a pair of Kickers, Sole Ware also gives the customer a 30% discount coupon good on any additional merchandise purchased within the next 30 days. Customers cannot obtain the coupon by any other means. Sole Ware anticipates that approximately 25% of the customers will utilize the coupon and that their average additional purchase will be for merchandise that normally sells for $120. Assuming that Sole Ware uses the residual method to estimate the stand-alone value selling price for the boots sold without the coupon. Prepare the journal entry to record the sale of 600 pairs of boots in April.

Explanation / Answer

Sole Ware, a shoe retailer, sells boots in different styles. In early March, the

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