Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer of Allied (seller products. May 3 Allied wade its first and only purchase of inventory for the period on May 3 for 2.289 units at a price of $11 cash per unit (for a total cost of $22,283). 5 Allied sold 1,208 of the units in inventory for $15 per unit (invoice total: $15,000) to Macy Co. under credit terms 2/18, n/6e. The goods cost Allied $11,200. 7 Macy returns 18 units because they did not fit the customer's needs (invoice amount: $1,5ee). Allied restores the units, which cost $1,100, to its inventory. 8 Macy discovers that 120 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 $709 to compensate for the damage. 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is not of returns, allowances, and any cash discount. Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $11 cash per unit (for a total cost of $22,000). Note: Enter debits before credits. Date General Journal May 03 Debit Credit Allied sold 1,000 of the units in inventory for $15 per unit (invoice total: $15,000) to Macy Co. under credit terms 2/10, 1/60 Note: Enter debits before credits. Date General Journal May 05 Debit Credit Record the cost of goods sold. este: Enter debits before credits Date General Journal May 06 Debit Credit Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,500). Note: Enter debits before credits. Date General Journal May 07 Debit Credit Allied restores the units, which cost $1,100, to its inventory. Note: Enter debits before credits Date General Journal May 07 Debit Credit 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 $700 to compensate for the damage. Note: Enter debits before credits Date May 08 General Journal Debit Credit Allied receives payment from Macy for the amount owed on the May 5 purchase payment is net of returns, allowances, and any cash discount. te: Enter debits before credits Date General Journal May 15 Debit Credit 1 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $11 cash per unit (for a total cost of $22,000). 2 Allied sold 1,000 of the units in inventory for $15 per unit (invoice total: $15,000) to Macy Co. under credit terms 2/10, 1/60. 3 Record the cost of goods sold. 4 Macy retums 100 units because they did not fit the customer's needs (invoice amount: $1,500). 5 Allied restores the units, which cost $1,100, to its inventory. 4 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,500). 5 Allied restores the units, which cost $1,100, to its inventory. 6 Macy discovers that 100 units are scurred but are still of use and therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $700 to compensate for the damage. 7 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount
