Journal entry worksheet Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Note: Enter debits before credits. The following list includes temporary accounts with normal balances is from th Company. Use these normal account balances to journalize closing entries. Journal entry worksheet Record closing of credit balances in temporary accounts. Note: Enter debits before credits. Journal entry worksheet 1 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,300). Note: Enter debits before credits. Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $9 cash per unit (for a total cost of $18,000 ). Note: Enter debits before credits. Journal entry worksheet Record closing of debit balances in temporary accounts. Note: Enter debits before credits. Journal entry worksheet (1) 2 7 Allied restores the units, which cost $900, to its inventory. Note: Enter debits before credits. Journal entry worksheet 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 $500 to compensate for the damage. Note: Enter debits before credits. 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 2,000 units at a price of $9 cash per unit (for a total cost of $18,000 ). May 5 Allied sold 1, 000 of the units in inventory for $13 per unit (invoice total: $13,000 ) to Macy Company under credit terms 2/10,n/60. The goods cost Allied $9,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,300 ). Allied restores the units, which cost $900, 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 $500 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. Journal entry worksheet Record closing of Dividends account. Note: Enter debits before credits. Enter the summarized activities in the T-account below. Journal entry worksheet