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Use the following information for the Exercises below. The following information applies to the questions displayed below] Altied Merchandisers was organized on May 1. Macy

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Use the following information for the Exercises below. The following information applies to the questions displayed below] Altied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products May 3 Allied nade its first and only purchase of inventory for the period on May 3 for 2,060 units at a peice of 5 ? cash per unit (for a total cost of $18,000 ). May 5 Allied sold 1,000 of the units in inventory for $13 per unit (invoice total: $13,009 ) to Macy Company under credit terns 2/10,n/6e. The goods cost Allied $9,009. May 7 Macy returns 100 units because they did not fit the custcoser's needs (inwoice anount: $1,390 ). Allied mestores the units, which cost $900, to its inventory. May 8 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 neceivable for $500 to conpensate for the danage. May 15 Allied receives paysent froen Macy for the asount owed on the May s purchase; payment is net of returns. allowances, and any cash discount. Exercise 5-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journat entries for Macy Company to record each of the May transactions. Macy is a retaller 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. Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $9 cash per unit (for a total cost of $18,000 ). Note: Enter debits before credits. Journal entry worksheet Allied sold 1,000 of the units in inventory for $13 per unit (invoice total: $13,000) to Macy Company under credit terms 2/10,n/60. The goods cost $9,000 to Allied. Note: Enter debits before credits. Journal entry worksheet Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,300 ). Allied restores the units, which cost $900, to its inventory. Note: Enter debits before credits. Journal entry worksheet 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 $500 to compensate for the damage. Note: Enter debits before credits. Journal entry worksheet 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

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