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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)

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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 $10 cash per unit (for a total cost of $30,000). May 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice totalt 521,000 to Macy Company under credit terms 2/10, n/60. The goods cost Allied $15,000. May 7 Macy returns 150 units because they did not fit the customer's needs (invoice Amount: $2,100). Allied restores the units, which cost $1,500, to its inventory. May 8 Macy discovers that 150 units are suffed but are still of use and, therefore, keeps the unite. Allied gives a price reduction allowance) and credits Macy's accounts receivable for $900 to compensate for the damage. Hay 15 Allied receiveo 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. (if no entry is required for a transaction/event. select "No Journal entry required" in the first account field.) Journal entry worksheet

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