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 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. Exercise 4-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 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 transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 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 Record entry Clear entry View general journal
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 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. Exercise 4-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 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 transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 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 Record entry Clear entry View general journal
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...
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![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 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.
Exercise 4-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1
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 transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
< 1
2
3 4 5
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
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5cb2e97d-461f-4a6b-bc4f-158a3c542dad%2F9808f325-f85b-4208-adac-d5b98ffb7ba0%2F9zr3g45_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 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.
Exercise 4-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1
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 transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
< 1
2
3 4 5
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
Record entry
Clear entry
View general journal
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