[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 1,000 units at a price of $10 cash per unit (for a total cost of $10,000 ). May 5 Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000 ) to Macy Company under credit terms 2/10,n/60. The goods cost Allied $5,000. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $700 ). Allied restores the units, which cost $500, to its inventory. May 8 Macy discovers that 50 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 $300 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. Exercise 5-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Srepare 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Exercise 5-10 (Algo) Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of \$23,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $15,745. Sydney pays $650 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,400 of the $23,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $938. May 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.) 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. Complete this question by entering your answers in the tabs below. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. Journal entry worksheet Sydney accepts delivery of $23,500 of merchandise it purchases for resale from Troy: invoice dated May 11 , terms 3/10,n/90, FOB shipping point. The goods cost Troy $15,745. Record Sydney's entry for this transaction. Note: Enter debits before credits. Exercise 5-10 (Algo) Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. merchandise. The returned goods had cost Troy $938. May 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.) 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. Complete this question by entering your answers in the tabs below. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. Journal entry worksheet 5 Sydney accepts delivery of $23,500 of merchandise it purchases for resale from Troy: invoice dated May 11 , terms 3/10,n/90, FOB shipping point. The goods cost Troy $15,745. Record Troy's entry for this transaction. Note: Enter debits before credits. Exercise 5-18 (Algo) Preparing a multiple-step income statement LO P4 Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Prepare a multiple-step income statement. Exercise 5-19 (Algo) Preparing a classified balance sheet for a merchandiser LO P4 Adams Company reports the following balance sheet accounts as of December 31 . Required: Prepare a classified balance sheet