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Please, I need help with this question. Everything is correct except the number for cash and accounts recievable.Please show steps.Thank you. Allied Merchandisers was organized
Please, I need help with this question. Everything is correct except the number for cash and accounts recievable.Please show steps.Thank you.
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 2,000 units at a price of $12 cash per unit (for a total cost of $24,000). May 5 Allied sold 1,000 of the units in inventory for $16 per unit (invoice total: $16,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $12,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,600). Allied restores the units, which cost $1,200, to its inventory. May 8 Macy discovers that 100 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 $800 to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. May 15 pare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross hod. View transaction list Journal entry worksheet Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Note: Enter debits before credits. Date General Journal Debit Credit May 15 Cash Sales discounts Accounts receivable 16,000 272 16,272Step by Step Solution
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