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 Hay 3 Allied made its first and only purchase of inventory for the period on May Stor 2.000 unitat price of $10 cash per unit for a total cost of $20,000) 5 Allied sold 1,000 of the unita in inventory for $X4 peront invoice totalt 14,000 to Mary Co. under credit terms 2/10, 1/60. The goods cost Allied $10,000. 7 Macy returns 100 units because they did not fit the custoere neede Lavoice amount: $5,40 Alfed restores the units, which cost $1,000, to its inventory Macy discovers that 100 units are seated but are still one and therefore keeps the units allied gives price reduction allowance and credits Mary secunt receivable for $600 to compeneate for the damage 15 Allied receives payment from Macy for the moved on the Ray Spur payment of returna, alatice, and any oth discount Prepare the appropriate journal entries for Macy Co to record each of the May transactions. Macy is a retailor 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.) 1 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). 2 Allied sold 1,000 of the units in inventory for $14 per unit (invoice total: $14,000) to Macy Co. under credit terms 2/10, n/60. The goods cost $10,000 to Allied. 3 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,400). Allied restores the units, which cost $1,000, to its inventory. 4 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 $600 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. No journal entry required Accounts payable Accounts receivable Accumulated depreciation Additional paid-in capital Bond premium Bonds payable Building Cash Common stock Cost of goods sold Delivery expense Depreciation expense Discount on bonds payable Dividends declared Finance costs Goodwill Interest expense Interest income Interest payable Interest receivable Land Merchandise inventory Miscellaneous expenses Other expenses Sales Sales discounts Sales discounts Sales returns and allowances
