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 My 3 for 2,000 unite at price of $11 cash per unit (for a total cost of $22,000) 3 Allied sold 1,000 of the units in Inventory for $15 per unit invoice total $15.000) to Nacy Co. under credit term 2/10, 1/60. The goods cost Allied $11,000. 7 Xacy returns 100 unite because they did not fit the customer's needs (invoice noont: $2,500). Allied restores the units, which coat 51,100. to its inventory Macy discover that 100 units are reaffed but are stof use and, therefore, keep the units. Allied gives a price reduction allowance) and credits Macy's accounts receivable for 3700 to compensate for the damage. 15 Allied receives payment from way for the sount owed on the May 5 porebase payment is set of returna, allowances, and any cash discount. Exercise 4-5 Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journal entries for Macy Co to record each of the May transactions. Macy is a retaller 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) Prepare the appropriate journal entries for Macy Co. 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. Of no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 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 $11 cash per unit (for a total cost of $22,000). Note: Enter debits before credits Date General Journal Debit Credit May 03 16.56 Views Journal entry worksheet Ailed sold 1,000 of the units inventory for 15 per unit invoice $15,000 to May On under Credit barms 2/10, 6. The goodscout 511,000 to Allied metode Genere Crede Date May 05 ME Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,500). Allied restores the units, which cost $1,100, to its inventory. Note: Enter debits before credits Date General Journal Debit Credit May 07 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 General Journal Debit Credit May 08 View transaction list Journal entry worksheet