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please help with both parts! Required information [The following information applies to the questions displayed below.] Allied Merchandisers was organized on May 1. Macy Company
please help with both parts!
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 May 3 for 3,000 units at a price of $11 cash per unit (for a total cost of $33,000 ). May 5 Allied sold 1,500 of the units in inventory for $15 per unit (invoice total: $22,500) to Macy company under credit terms 2/10,n/60. The goods cost Al1ied $16,500. May 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $2,250). Allied restores the units, which cost $1,650, to its inventory. Hay 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 $1,050 to compensate for the damage. May 15 Allied receives payment frcm Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Prepare joumal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. 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 May 3 for 3,000 units at a price of $11 cash per unit (for a total cost of $33,000 ). May 5 Allied sold 1,500 of the units in inventory for $15 per unit (invoice total: $22,500) to Macy Company under credit terma 2/10,n/60. The goods cost A111ed $16,500 May 7 Macy returns 150 units because they did not fit the customer's needs (involce amounts $2,250). Allied restores the units, Which cost $1,650, to its inventory. May 8 Macy digcovers that 150 unitg are scuffed but are stil1 of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and aredits Macy s accounta receivable for $1,050 to compennate for the damage. May 15 Alled recelves payment from Kacy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any eash 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 requited" in the first account field.) Step by Step Solution
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