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 unitin at a price of $8 cash per unit (for a total cost of $24,000 ). May 5 Nilied nold 1,500 of the units in inventory for $12 per unit (involce totali $18,000 ) to Macy Company under eredit terms 2/10,n/60. The goods cost 111 ed $12,000. May 7 Macy returns 150 units because they did not fit the customer's needs (invoice anount: $1,800 ). Aliled restores the units, which cost $1,200, to its inventory. May 8 Macy discovers that 150 units are scuffed but are stil1 of use and, therefore, keeps the units. A11ied gives a price reduction (allowance) and oredits Macy's accounts recoivable for $600 to compensate for the damage. May 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. Journal entry worksheet \begin{tabular}{l|l|l|l|l|l|l|} \hline 2 & 3 & 4 & 5 & 6 & 7 \\ \hline \end{tabular} Allied made its first and only purchase of inventory for the period on May 3 for Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. Journal entry worksheet 234567 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $8 cash per unit (for a total cost of $24,000 ). Note Enter detaits before creaits. 1 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $8 cash per unit (for a total cost of $24,000 ). 2 Allied sold 1,500 of the units in inventory for $12 per unit (invoice total: $18,000 ) to Macy Company under credit terms 2/10,n/60. 3 Record the cost of goods sold. 4 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $1,800 ). 5 Allied restores the units, which cost $1,200, to its inventory. Note : = journal entry has been entered 6 Macy discovers that 150 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. 7 Allied receives payment from Macy for the Gimmount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Note : journal entry has been entered
