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Required information The following information applies to the questions displayed below) Allied Merchandisers was organized on May 1. Macy Co 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 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). 5 Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, 1/60. The goods cost Allied $5,000. 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $700). Allied restores the units, which cost $500, to its Inventory 8 Macy discovers that 50 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. 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 journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method View transaction list 1 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). 2 Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60. 3 Record the cost of goods sold. Macy returns 50 units because they did not fit the customer's needs (invoice amount: $700). 5 Allied restores the units, which cost $500, to its inventory. Note: = journal entry has been entered Record entry Clear entry TU WUL vi yuuuu vuru. Macy returns 50 units because they did not fit the customer's needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory. 6 Macy discovers that 50 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. Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Required information [The following information applies to the questions displayed below) Allied Merchandisers was organized on May 1, Macy Co. 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 1,000 units at a price of $10 cash per unit (for a total cost of $10,000) 5 Allied sold see of the units in Inventory for $14 per unit (invoice total: $7,000 to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $5,000. 7 Macy returns se units because they did not fit the customer's needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory. 8 Macy discovers that 50 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. 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. 1 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). 2 Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60. The goods cost $5,000 to Allied. 3 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory. 4 Macy discovers that 50 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 con to comencata for the damana Note : = journal entry has been entered Record entre Allieu solu Juu oi une unius in inventory 1or $14 per un (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60. The goods cost $5,000 to Allied. 3 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory. 4 Macy discovers that 50 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. 5 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 : = journal entry has been entered Recom entry Clearen The following information is taken from Reagan Company's December 31 balance sheet Cash and cash equivalents Accounts receivable Merchandise inventories Prepaid expenses Accounts payable Notes payable Other current liabilities $ 9,519 75,922 65,862 5,200 $16,050 92,138 10,600 If net sales for the current year were $606,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.) Multiple Choice O 66.5 days Multiple Choice o 66.5 days o 76.6 days o 1577 days o 397 days o 457
