question 5

question 5

Required informotion (The forliowing information dpplies to the questions displayed below.) Allied Merchandlsers was organized on May 1. Macy Company is a majr custonser (buyel) of Allied (seller) products. cash per wint (for a total coit of 324 , coso): cretit teres 2710 , m/6e, the seods cost Aliled $12,000. the haits, wich cost n, 200, to its imentary. May of Macy ifiscovers that joo intte are scuffed but are still of vie and, therefere, herps the units. Allied gluns a price reductioe (a11ounce) and credits Macy's accounts receivetile for soee ta cospensate for the danage. atlouncet, and any cash discount. Prepare joumal entries to record the following transactions for Allied assuming it uses a perpetual inventory systemt and the gross method. Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products. May 3 Allied eade its firit and only purchase of inventory for the period an May 3 for 2, e0e waits at a price of \$12 cath per unit (for a total cost of $24,000). May $ Allied sold 1,000 of the units in inventory for $16 per unit (involce totali \$16, 000) to Macy Cappany under. credit terns 2/10,1/60. The goods cost A111eit $12,000, Hoy 7 Macy returns 100 units because they did not fit the custoeants needs (Involce ansunt \$1, lee), allifed resteres the units, which cost $1,200, to its inventory. Hoy If Kacy discovers that 100 units are scuffed but are sti1l of use and, therefore, keaps the units. Allied gives a price redyction (allowance) and creilits Macy's acceints receivable for seoe to conpensate for the daase. May 15 A11ied recrives payeent from Macy for the asount owed on the May 5 purchased paysent is net of returns, allawances, and any cash disedunt. Prepare journal entiles to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method Journal entry worksheet 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 ). Journal entry worksheet 234567 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 ). Note: Enter debits before credits. Journal entry worksheet Allied sold 1,000 of the units in inventory for $16 per unit (invoice total: $16,000 ) to Macy Co, under credit terms 2/10, n/60. Note: Enter debits befoce credits. Journal entry worksheet Journal entry worksheet Macy returns 100 units because they did not fit the customer's needs (involce amount: $1,600). Notes Einter isebits before credits. Journal entry worksheet Allied restores the units, which cost $1,200, to its inventory. Nate: tinter debits tiefore credits. Journal entry worksheet 102345 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied gives o price reduction (allowance) and credits Macy's accounts recelvable for $800 to compensate for the damage. Note: Enter debits before credits. Journal entry worksheet 123456 Allied receives payment frorn Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Notes tinter debits before credits