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Can You please help me? I'm stuck on this question Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of

image text in transcribedCan You please help me? I'm stuck on this question

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 $12 cash per unit (for a total cost of $24,000). May 5 Allied sold 1,998 of the units in inventory for $16 per unit (invoice total: $16,800) to Macy Company under credit terms 2/10, n/58. The goods cost Allied $12,000. May 7 Macy returns 180 units because they did not fit the customer's needs (invoice amount: $1,500). Allied restores the units, which cost $1,200, to its inventory. May 8 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 $8ee to compensate for the damage. May 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. Exercise 4-7 (Algo) Effects of sales transactions on income statement LO P2 Use the above Informations, analyze each transaction by Indicating its effects on the income statement-specifically. Identify the accounts and amounts (including + or -) for each transaction. May 3 May 8 Income Statement Components May 7 Increase/Decrease May 15 Increase/Decrease Increase/Decrease May 5 increase/Decrease (+) increase Amount Amount Amount Increase/Decrease Amount Amount Sales 16.500 Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit

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