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Record the cost of goods sold. Note: Enter debits before credits. Allied receives payment from Macy for the amount owed on the May 5 purchase;

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Record the cost of goods sold. Note: Enter debits before credits. 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. 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 $300 to compensate for the damage. Note: Enter debits before credits. Allied sold 1,000 of the units in inventory for $11 per unit (invoice total: $11,000 ) to Macy Company under credit terms 2/10,n/60. Note: Enter debits before credits. Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,100 ). Note: Enter debits before credits. Allied restores the units, which cost $700, to its inventory. Note: Enter debits before credits. Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $7 cash per unit (for a total cost of $14,000 ). Note: Enter debits before credits. Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products. May 3 Altied made its first and only purchase of inventory for the period on May 3 for 2 , ebs units at a price of $7 cash per unit (for a total cost of $14,090 ). May 5 Alifed sold 1,6e0 of the units in inventory for $11 per unit (invoice to 51 t: $11,000 ) to Macy Company under credit terms 2/10,n/68. The goods cost Allied $7,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,100). Atued restores the units, which cost $700, to its inventory. May 8 Macy discovers that 100 units are scuffed but are stil of use and, therefore, kceps the units. Allied gives a price reduction (aliowance) and credits Macy's accounts receivable for $30 s 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

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