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 2,000 units at a price of 57 cash per unit (for a total cost of $14,000) 5 Allied sold 1,000 of the units in Inventory for $11 per unit invoice total: $11,000) to Nacy Cor under Credit teras 2/10, 1/60. The goods cost Allied $7,000 27 Macy returns 100 units because they did not fit the customer's needs (Anvoice wount: $1,100). Allled restores the units, which cost $700, to its Inventory. 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 $300 to compensate for the dange 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 Journal entry worksheet > Allied made its first and only purchase of inventory for the perlod on May a for 2,000 units at a price of 7 cash per unit for a total cost of $14,000), Notenter debts bore credits General Journal May 3 ! Required Information The following information applies to the questions displayed below) Alled Merchandisers was organized on May 1 Macy Co. is a major customer (buyer) of Allied (seller products OK 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 $7 cash per unit (for a total cost of $14,000), 5 Allied sold 1,000 of the units in Inventory for $11 per unit invoice total: $11,000 to Macy Co. under Credit terns 2/10, 1/60. The foods cost Allied 57,000 7 Macy returns 100 units because they did not fit the customer's needs invoice arount: $1,100) Allied restores the units, which cost $700, to its inventory Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. All led kives price reduction allowance) and credits Macy's accounts receivable for $300 to compensate for the dange 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 joumal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method Vww transaction et Journal entry worksheet 12 7 > 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). Ceneo CIS May 03 Journal entry worksheet Allied sold 1,000 of the units in inventory for $11 per unit (invoice total: $11,000) to Macy Co. under credit terms 2/10, n/60. Note: Enter debits before credits Date May 05 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the cost of goods sold. Noter Enter debits before credits Date General Journal Debit May 05 Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,100) Noter Enter debits before credits. Date General Journal Debit Credit May 07 Record entry Clear entry View general journal View transaction list Journal entry worksheet Allied restores the units, which cost $700, to its inventory. Note: Enter debits before credits General Journal Debit Credit Date May 07 Record entry Clear entry View general journal View transaction list Journal entry worksheet
