May 15th jornal transactions

Allied Merchandisers was organized on May 1 Macy Company is a major customer (buyer) of Allied (seller) products. May 3 Atlied sade its first and only purchase of inventory for the period on May 3 for 3,0ea units at a price of $10 cash per unit (for a total cost of $30,6ee ). May 5 Altied sold 1, ses of the units in inventory for $14 per init (invoice total: $21, eae) to Macy Conpany under credit terns 2/10, n/60. The goods cost Allied $15,000. May 7 Macy returns 150 units because they did not fit the custoner's needs (invoice anount: $2,16e ). Allied restores the units, which cost $1,500, to its inventory. Kay 8 Macy discovers that 150 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 $900 to compensate for the danage. May 15 Allied receives paysent fron Macy for the anount owed on the May S purchase: paytant is net of returns, allowances, and any cash discount. Exercise 4-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the approptiate journal entries for Macy Company to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system; is purchases these units for resale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet (1) 230 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Fone: Enter debits before credits