Merchandising Operations #1

Required information [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 Nay 3 for 3,000 units at a price of \$12 cash per unit (for a total cost of $36,690 ). May 5 Allied sold 1,500 of the units in inventory for $16 per unit (invoice total: \$24, 000) to Macy Company under credit terns 2/10, n/60. The goods cost Allied $18,000. May 7 Macy returns 150 units because they did not fit the customer's needs (invoice anount: \$2,400). Al1ied restores the units, which cost $1,800, to its inventory. May 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 $1,200 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. Journal entry worksheet repare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross hethod. 234567 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $12 cash per unit (for a total cost of $36,000 ). Notes Enter debits before credits. Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $12 cash per unit (for a total cost of $36,000 ). Journal entry worksheet Allied sold 1,500 of the units in inventory for $16 per unit (invoice total: $24,000) to Macy Company under credit terms 2/10, n/60. Journal entry worksheet