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 $8 cash per unit (for a total cost of $8,000) May 5 Allied sold 500 of the units in inventory for $12 per unit (invoice total $6,000) to Macy Company under credit terms 2 10, n 60 The goods cost Allied $4,000 May 7 Macy returns 50 units because they did not fit the customers needs (invoice amount $600) Allied restores the units, which cost $400, to its inventory May 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 $200 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 Prepare the appropriate 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 it purchases these units for resale (If no entry is required for a transaction event, select No journal entry required in the first account field ) Allie made its first and only purchase of inventory for the period on May 3 for 1000 units at a price of $8 cash per unit (for a total cost of $8000) Journal entry worksheet Note Enter debits before credits Date General Journal Debit Credit May 03 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

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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 $8

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 $8 cash per unit (for a total cost of $8,000).
May 5	Allied sold 500 of the units in inventory for $12 per unit (invoice total: $6,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $4,000.
May 7	Macy returns 50 units because they did not fit the customers needs (invoice amount: $600). Allied restores the units, which cost $400, to its inventory.
May 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 $200 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. Prepare the appropriate 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; it purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Allie made its first and only purchase of inventory for the period on May 3 for 1000 units at a price of $8 cash per unit (for a total cost of $8000)

Journal entry worksheet

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
May 03

[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.