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 Alled (seller products May 3 Allied made its first and only purchase of inventory for the period on May tor 2,000 wita at a price of $10 cm per unit (for a total cost of $20,000) May 5 Allied Hold 1.000 of the unit in inventory for $14 per unit invoice totalt 1,000 to Macy Company under credit terms 2/10, N760. The goods cout Allied $10,000 May 7 Macy returns 100 units because they did not fit the customer's nenda invoice amount $1400) Amd contores the units, which cout $1,000 to its inventory May 8 Macy discovers that 100 units are suffed but are still of us and therefore keep the unita. Allied gives a price reduction allowance) and credits Macy's sccounts receivable for $600 to compensate for the damage May 15 Allied receives payment from Maey for the amount owed on the May 5 purchase payment is not of return allowance and any dah discount. repare journal entries to record the following transactions for Alied assuming it uses a perpetual inventory system and the gross method View transaction lit 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 $10 cash per unit (for a total cost of $20,000). Note Enter des before credite May 03 Central Jaume Merchandise inventory Cash Doll 20,000 20,000 View transaction list Journal entry worksheet Allled sold 1,000 of the units in Inventory for $14 per unit (invoice total: $14,000) to Macy Company under credit terms 2/10, 1/60. Note: Enter debits before credits Date Doblt Credit May 05 General Journal Accounts receivable Sales 14,000 14,000 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Date General Journal May 05 Cost of goods sold Merchandise inventory Credit Doble 10,000 10,000 Record entry Clear entry View general Journal Journal entry worksheet Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,400) Noter inter debit before credits Dobit Credit May 07 General Journal Sales retums and allowances Accounts receivable 1,400 1,400 Record entry Clear entry View general Journal Journal entry worksheet 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. Data May 15 Dobit Credit General Journal Cash Sales discounts Accounts receivable Record entry Clear entry View general Journal
