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Ch 3 0 Required information Part 1 of 2 Use the following information for the Exercises below. [The following information applies to the questions displayed

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Ch 3 0 Required information Part 1 of 2 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 Co. is a major customer (buyer) of Allied (seller) products. 1428 points May Skipped eBoo 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). 5 Allied sold 1,000 of the units in inventory for $16 per unit (Invoice total: $16,000) to Macy Co. under credit terms 2/10, 1/60. The goods cost Allied $12,000. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,600). Allied restores the units, which cost $1,200, to its inventory. 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 $800 to compensate for the damage. 15 Allied receives payment from Hacy for the amount owed on the May 5 purchase payment is net of returns, allowances, and any cash discount. Him References Exercise 5.4 Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Aled assuming it uses a perpetual inventory system and the gross method Journal entry worksheet 2 3 4 5 Allied sold 1,000 of the units in inventory for $16 per unit (invoice total: $16,000) to Macy Co. under credit terms 2/10, n/60. Note: Enter debits before credits. Date General Journal Debit Credit May 05 Record entry Clear entry View general journal Next Required information Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Date General Journal Debit Credit May 05 Record entry Clear entry View general journal Next Required information Journal entry worksheet of 7

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