Required Information The following information applies to the questions displayed below] Allied Merchandisers was organized on May 1. Macy Company is a mojor customer (buyer) of Allied (seller) products. Hay 3 Allted ade its first and enly purchase of inventery for the perfed on way 3 fer 3 , eed woits at a price of 59 cash per unit (for a total cost of 527, eee). May 5 Mllied sold 1, see of the wnits in invertory for $13 per unit (invoice totall: $19, see) to Macy coepany ander fredit teras 2/1e, n/s0. The goods cost a 111ed $13,5a0. May 7 Macy raterns 150 units because they did not fit the custoner's needs (2nvolce ahognt $1,956 ) , Allied restores the uaits, which cott $1,350, to its Inventory. Nay 1 Racy discovers that 15d anits are scuffed but are -still of use and, therefore, kesps the undts. Allied gives a price reductios (allowance) and credits Macy's accounts recelvable for 3750 to conpensate fer the damage. May as allied receivel payeent fron Macy fer the ameunt oued an the pay 5 purchase; paybeht is inet of returns, allowances, and any cash diticount. repare journal entnes to record the following transactuons for Alled assuming it uses a perpetual inventory system and the gross nethod. Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $9 cash per unit (for a total cost of $27,000 ). Nerei Enter debite before credith. Journal entry worksheet 67 Allied sold 1,500 of the units in inventory for $13 per unit (invoice total: $19,500) to Macy Company under credit terms 2/10, n/60. Note: Enter debits before credits. Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Journal entry worksheet Macy returns 150 units because they did not fit the customer's needs (invoice amounti $1,950 ). Note: Enter debits before credits. Journal entry worksheet Allied restores the units, which cost $1,350, to its inventory. Note: Enter debits before credits. Journal entry worksheet 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 $750 to compensate for the damage. Note: Enter debits before credits. Journal entry worksheet 123 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. Accourts and amouras fecluding - or - for eoch trancocbon Journal entry worksheet 5 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $9 cash per unit (for a total cost of $27,000 ). Note: Enter debits before credits. Journal entry worksheet Allied sold 1,500 of the units in inventory for $13 per unit (invoice total: $19,500 ) to Macy Company under credit terms 2/10,n/60. The goods cost $13,500 to Allied. Note: Enter debits before credits. Macy returns 150 units because they did not fit the customer's needs (invoice amount: $1,950 ). Allied restores the units, which cost 51,350 , to its inventory. Note: Enter debits before credits. Journal entry worksheet Macy discovers that 150 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allovance) and credits Macy's accounts receivable for $750 to compensate for the damage. Note: Enter debits before credits. Journal entry worksheet Allied receives payment from Macy for the amount oved on the May 5 purchase: payment is net of returns, allowances, and any cash discount. Note: Enter debits before credits
