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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 $9 cash per unit (for a total cost of $9,000). May 5 Allied sold 500 of the units in inventory for $13 per unit (invoice total: $6,500) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $4,500. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $650). Allied restores the units, which cost $450, 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 $250 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. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $9 cash per unit (for a total cost of $9,000). Note: Enter debits before credits. Date May 03 General Journal Debit Credit >

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 $9 cash per unit (for a total cost of $9,000). May 5 Allied sold 500 of the units in inventory for $13 per unit (invoice total: $6,500) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $4,500. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $650). Allied restores the units, which cost $450, 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 $250 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. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $9 cash per unit (for a total cost of $9,000). Note: Enter debits before credits. Date May 03 General Journal Debit Credit >

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 2E: Journal Entries Mead Company uses a perpetual inventory system and engaged in the following...
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Provide 7 entries in worksheet
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 $9 cash per unit (for a total cost of $9,000). May 5 Allied sold 500 of the units in inventory for $13 per unit (invoice total: $6,500) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $4,500. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $650). Allied restores the units, which cost $450, 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 $250 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.
Transcribed Image Text: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 $9 cash per unit (for a total cost of $9,000). May 5 Allied sold 500 of the units in inventory for $13 per unit (invoice total: $6,500) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $4,500. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $650). Allied restores the units, which cost $450, 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 $250 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.
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $9 cash per unit (for a total cost of $9,000). Note: Enter debits before credits. Date May 03 General Journal Debit Credit >
Transcribed Image Text:Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $9 cash per unit (for a total cost of $9,000). Note: Enter debits before credits. Date May 03 General Journal Debit Credit >
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