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Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits

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Macy discovers that 200 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 $300 to compensate for the damage. Note: Enter debits before credits. Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000 ). Note: Enter debits before credits. Macy returns 125 units because they did not fit the custorner's needs (invoice amount: $1,750 ). Allied restores the units, which cost $1,250, to its inventory. Note: Enter debits before credits. 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, 0e units at a price of $10 cash per unit (for a total cost of $20,000 ). May 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000 ) to Macy Company under credit terms 2/10,n/60. The goods cost Allied $15,000. May 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: \$1,750). Altitd restores the units, which cost $1,250, to its inventory. May 8 Macy discovers that 200 units are scuffed but are stili of use and, therefore, keeps the units. Allied gives a price reduction (atlowance) and credits Macy's accounts receivable for $300 to compensate for the danage. 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. Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000 ) to Macy Co. under credit terms 2/10,n/60. The goods cost $15,000 to Allied. Note: Enter debits before credits. 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

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