please answer with 30 minutes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
please answer with 30 minutes
![I need this table filled out in full. Thank you.
Required information
Use the following information for the Exercises below.
[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 units at a
price of $10 cash per unit (for a total cost of $30,000).
May 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Company
under credit terms 2/10, n/60. The goods cost Allied $15,000.
May 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $2,100). Allied
restores the units, which cost $1,500, to its inventory.
May 8
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 $900 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 4-7 (Algo) Effects of sales transactions on income statement LO P2
Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the
accounts and amounts (including+ or -) for each transaction.
Income Statement Components
Sales
Sales discounts
Sales returns and allowances
Net sales
Cost of goods sold
Gross profit
May 3
Increase/Decrease
() increase
Amount
May 5
Increase/Decrease
Amount
May 7
Increase/Decrease Amount
May 8
Increase/Decrease
Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23755f39-ffaf-4cf5-9f2d-a72b6fb0bb96%2Fe4829cd6-cca3-4b86-a511-896707392fd5%2F10xqvm9_processed.png&w=3840&q=75)
Transcribed Image Text:I need this table filled out in full. Thank you.
Required information
Use the following information for the Exercises below.
[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 units at a
price of $10 cash per unit (for a total cost of $30,000).
May 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Company
under credit terms 2/10, n/60. The goods cost Allied $15,000.
May 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $2,100). Allied
restores the units, which cost $1,500, to its inventory.
May 8
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 $900 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 4-7 (Algo) Effects of sales transactions on income statement LO P2
Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the
accounts and amounts (including+ or -) for each transaction.
Income Statement Components
Sales
Sales discounts
Sales returns and allowances
Net sales
Cost of goods sold
Gross profit
May 3
Increase/Decrease
() increase
Amount
May 5
Increase/Decrease
Amount
May 7
Increase/Decrease Amount
May 8
Increase/Decrease
Amount
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