Allied Merchandisers was organized on May 1. Macy Co. 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 $8 cash per unit (for a total cost of $24, eee). 5 Allied sold 1,500 of the units in inventory for $12 per unit (invoice total: $18,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $12, eee. 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $1,880). Allied restores the units, which cost $1,200, to its inventory. 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 $6ee 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. Journal entry worksheet 2 3 4 5 6 7 Allied made its first and only purchase of Inventory for the period on May 3 for 3,000 units at a price of $8 cash per unit (for a total cost of $24,000). Note: Enter debits before credits. Date General Journal Debit Credit May 03 Journal entry worksheet