0 Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below) Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products, May 3 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $9 cash per unit (for a total cost of $27,000). May 5 Allied sold 1,500 of the units in inventory for $13 per unit (invoice total: $19,500) to Macy Company under credit terns 2/10, n/60. The goods cost Allied $13,500. May 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $1,950). Allied restores the units, which cost $1,350, to its inventory. May 8 Macy discovers that 150 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $750 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May purchase; payment is net of returns, allowances, and any cash discount. Exercise 5-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journal entries for Macy Company to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system; it purchases these units for resale. (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) Answer is not complete. Exercise 5-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journal entries for Macy Company to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system; it purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. General Journal No Credit Date May 03 Debit 27,000 1 X Merchandise inventory Cash 27,000 2 May 05 19,500 19,500 Accounts receivable Sales Cost of goods sold Merchandise inventory 13,500 > 3 13,500 3 May 07 19.500 Sales retums and allowances Accounts receivable X 3 19,500 3 4 May 08 750 Purchases returns and allowances Accounts receivable X 750 > 5 May 15 16,800 Cash Accounts receivable 3 16,800 X