4 Problem Solving 1 of 2 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 Co. is a major customer (buyer) of Allied (seller) products. May Book Hint 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 1.000 of the units in inventory for $14 per unit invoice total: $14.000) to Nacy Co. under credit terme 2/10. n/60. The goods cost Allied $10,000. 7 Macy returns 100 units because they are not the customer'needs invoice amount: $1,400). Allied restores the units. which cost $1,000, to its inventory 8 Macy discovers that 100 units are but are still of use and therefore, keeps the units. Allied sende Hacy A credit memorandum for $600 toward the original Swoice 15 Allied receives payment from Nacy for the amount owed on the May 5 purchase: payment is net of returns, allowances, and any cash discount. Print Ho t e for the damage. rences Exercise 4-4 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. (Allied estimates returns using an adjusting entry at each year-end.) View transaction list Tournal antriwark-h 15 Allied receives payment from Macy for the amount owed on the Way 5 purchase, payment is net of returns, allowances, and any cash discount. Exercise 4-4 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. (Allied estimates returns using an adjusting entry at each year-end.) View transaction list Journal entry worksheet ces 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 May 03