Allied Merchandisers was organized on May 1. Macy Company 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 2,000 units at a price of $7 cash per unit (for a total cost of $14,000 ). May 5 Allied sold 1,000 of the units in inventory for $11 per unit (1nvoice total: $11,000) to Macy Company under eredit terms 2/10,n/60. The goods cost Al11ed $7,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount; $1,100). Allied restores the units, which cost $700, to its inventory. May 8 Macy discovers that 100 units are scuffed but are stili of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounta receivable for $300 to compensate for the damage. May 15 Allfed receives payment from Macy for the anount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. repare joumal entries to record the following transactions for Alied assuming it uses a perpetual inventory system and the gross nethod. Required information [The following information applies to the questions displayed below.] Allied Merchandisers was organized on May 1. Macy Company 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 2,000 units at a price of $7 cash per unit (for a total cost of $14,000 ). May 5 Allied sold 1,000 of the units in inventory for $11 per unit (invoice totalt $11,000) to Macy Company under eredit terms 2/10,n/60. The goods cost Aliled $7,000. May 7 Macy returns 100 units because they did not fit the customer' 1 needs (involce amount: $1,100). A11ied restores the units, which cost $700, to its inventory. May 8 Macy discovers that 100 units are scuffed but are stili of use and, therefore, keeps the units. Al1ied gives a price reduction (allowance) and eredits Macy's accounts receivable for $300 to compensate for the damage. May 15 Allied receiven payment from Macy for the amount oved on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Prepare the appropriate journal entries for Macy Company 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Additional information: a. Store supplies still available at fiscal year-end amount to $1,600. b. Expired insurance, an administrative expense, is $1,600 for the fiscal year: c. Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,800 of inventory is still available at fiscal year-end. Required: Using the above information, prepare adjusting journal entries. . Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. . Prepare a single-step income statement for the year ended January 31 . Complete this question by entering your answers in the tabs below. Using the above information, prepare adjusting journal entries. Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and aeneral and administrative expenses. a. Store supplies still available at fiscal year-end amount to $1,600. b. Expired insurance, an administrative expense, is $1,600 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,800 of inventory is still avallable at fiscal year-end. Required: 1. Using the above information, prepare adjusting journal entries. 2. Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of gds sold, selling expenses, and general and administrative expenses. 3. Prepare a single-step income statement for the year ended January 31 . Complete this question by entering your answers in the tabs below. Prepare a single-step income statement for the year ended January 31. Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Additional Information: a. Store supplies still available at fiscal year-end amount to $1,600. b. Expired insurance, an administrative expense, is $1,600 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,800 of inventory is still available at fiscal year-end. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal places.)