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Use the following information for the Exercises below. [ The following information applies to the questions displayed below. ] Allied Merchandisers was organized on May
Use the following information for the Exercises below.
The following information applies to the questions displayed below.
Allied Merchandisers was organized on May Macy Company is a major customer buyer of Allied seller products.
May Allied made its first and only purchase of inventory for the period on May for units at a price of $
cash per unit for a total cost of $
May Allied sold of the units in inventory for $ per unit invoice total: $ to Macy Company under
credit terms The goods cost Allied $
May Macy returns units because they did not fit the customer's needs invoice amount: $ Allied restores
the units, which cost $ to its inventory.
May Macy discovers that 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 $ to compensate for the damage.
May Allied receives payment from Macy for the amount owed on the May purchase; payment is net of returns,
allowances, and any cash discount.
Exercise Algo Recording purchases, purchases returns, and purchases allowances LO P
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.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field
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