4 Part 1 of 2 Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) 20 Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products. points May eBook Ask 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15,000. 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. 8 Macy discovers that 200 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 $300 to compensate for the damage. 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. Exercise 5-4 Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. Journal entry worksheet 1 2 3 4 5 6 7 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). Note: Enter debits before credits. General Journal Debit Credit Date May 03 Record entry Clear entry View general Journal Journal entry worksheet 1 N 3 4 5 6 7 > Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. Note: Enter debits before credits. Date General Journal Debit Credit May 05 Record entry Clear entry View general Journal Journal entry worksheet Record the cost of goods sold. The goods cost Allied $15,000. Note: Enter debits before credits. General Journal Debit Credit Date May 05 Record entry Clear entry View general Journal Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). Note: Enter debits before credits. Gen Debit Credit Date May 03 Record entry Clear entry View general Journal Journal entry worksheet