2 2 Part 2 of 2 points 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 2,000 units at a price of $8 cash per unit (for a total cost of $16,000). May 5 Allied sold 1,000 of the units in inventory for $12 per unit (invoice total: $12,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $8,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Allied restores the units, which cost $800, to its inventory. May 8 Macy discovers that 100 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 $400 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. eBook Hint 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.) View transaction list Print References Journal entry worksheet 1 2 3 4 5 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $8 cash per unit (for a total cost of $16,000). Note: Enter debits before credits. Date May 03 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 4 5 Allied sold 1,000 of the units in inventory for $12 per unit (invoice total: $12,000) to Macy Company under credit terms 2/10, n/60. The goods cost $8,000 to Allied. Note: Enter debits before credits. Date May 05 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 3 4 5 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Allied restores the units, which cost $800, to its inventory. Note: Enter debits before credits. Date May 07 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet 1 2 3 4 5 Macy discovers that 100 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 $400 to compensate for the damage. Note: Enter debits before credits. Date May 08 General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet 1 2 3 4 5 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Note: Enter debits before credits. Date May 15 General Journal Debit Credit Record entry Clear entry View general journal