Other General Journal Questions

2- 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.

3- Record the cost of goods sold.

4-Macy returns 150 units because they did not fit the customers needs (invoice amount: $2,400).

5- Allied restores the units, which cost $1,800, to its inventory.

6- 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.

7-Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.

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 A.llied 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 ). May 5 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. The goods cost Allied $18,000. May 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $2,400 ). Allied 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 23457> 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 ). Note: Enter debits before credits