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! Required information [ The following information applies to the questions displayed below. ] Allied Merchandisers was organized on May 1 . Macy Company is

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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 210,n60. The goods cost Allied $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.
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 $1,050 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.
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.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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