Journal entry worksheet

Required information (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. 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 $12 cash per unit (for a total cost of $12, eee). 5 Allied sold 500 of the units in inventory for $16 per unit (invoice total: $8,000) to Macy Co. under credit terms 2/10, n/6e. The goods cost Allied $6, 7 Macy returns 58 units because they did not fit the customer's needs (invoice amount: $800). Allied restores the units, which cost $6ee, to its inventory. 8 Macy discovers that 50 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 $480 to compensate for the damage. 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. Prepare the appropriate journal entries for Macy Co. to record each of the May transactions Macy is a retailer that uses the gross method and a perpetual inventory system, and purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Journal entry worksheet 2 3 4 5 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $12 cash per unit (for a total cost of $12,000). Note: Enter debits before credits General Journal Debit Credit Date May 03 Record entry Clear entry View general journal Prey 55