Ch 04 Ex 4-6, 7, 8 i 1 Part 1 of 3 5 points eBook Hint Ask Print References ! Saved Help Save & Exit Check my work Required information Use the following information for the Exercises below. [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 1,000 units at a price of $8 cash per unit (for a total cost of $8,000). May 5 Allied sold 500 of the units in inventory for $12 per unit (invoiceItotal: $6,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $4,000. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $600). Allied restores the units, which cost $400, to its inventory. May 8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied gives price reduction (allowance) and credits Macy's accounts receivable for $200 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. Submit Exercise 4-6 (Algo) Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.

Required information Use the following information for the Exercises below. [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. Moy 3 Allled nade its flest and only purchose of Imentory for the perlod on May 3 for 1, 000 unlts at a price of is eash per unit (for o total cost of st,e00). credit term 2/10, n/6e. The goods cost Allied $4,000. restores the units, wich cost $400, to its inventory. ray o Hacy discovers that so units ore seoffed but ore stili of use and, therefore, keps the vilts. Allied gives o price reduction (ollowance) ond eredits Mocy's occousts rectiveble for 5200 to compensate for the danage. May 15 Allied recelves poyatht froen Macy for the anount oued on the May 5 purchases payaent is net of returns, allowances, ond any cash discount. Exercise 4.6 (Algo) Recording sales, sales returns, ond soles allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method