Requlred Informatlon [The following Information applies to the questions displayed below.] Alled Merchandisers was organized on May 1. Macy Company Is a major customer (buyer) of Alled (seller) products. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). 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,eee. May 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. May 8 Macy discovers that 28e 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 $3e0 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 the appropriate Journal 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. (If no entry Is required for a transaction/event. select "No Journal entry requlred" In the first account fleld.)
Requlred Informatlon [The following Information applies to the questions displayed below.] Alled Merchandisers was organized on May 1. Macy Company Is a major customer (buyer) of Alled (seller) products. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). 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,eee. May 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. May 8 Macy discovers that 28e 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 $3e0 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 the appropriate Journal 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. (If no entry Is required for a transaction/event. select "No Journal entry requlred" In the first account fleld.)
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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What am I missing from my general journal?:(( tysm in advance
![Requlred Information
[The following information applies to the questions displayed below.]
Allied Merchandsers was organized on May 1. Macy Company is a major customer (buyer) of Alled (seller) products.
May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10
cash per unit (for a total cost of $20,000).
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/68. The goods cost Allied $15,e0e.
May 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores
the units, which cost $1,250, to its inventory.
May 8 Macy discovers that 200 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 $300 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 the approprlate Journal entrles 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 unlts for resale. (If no entry Is required for a transactlon/event,
select "No Journal entry requlred" In the first account fleld.)
Answer is not complete.
No
Date
General Journal
Debit
Credit
2
May 05
Merchandise inventory
21,000
Accounts payable
21,000
3
May 07
Accounts payable
1,750
Merchandise inventory
1,750
4
May 08
Accounts payable
300
Merchandise inventory
300
May 15
Accounts payable
18,950
Cash
18,571
Merchandise inventory
379](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f5d52bb-9e14-468b-ab59-8c5215f042e6%2F7a23fbfe-f199-4cb3-8d4b-e2d63b795dc7%2Fnijgja_processed.png&w=3840&q=75)
Transcribed Image Text:Requlred Information
[The following information applies to the questions displayed below.]
Allied Merchandsers was organized on May 1. Macy Company is a major customer (buyer) of Alled (seller) products.
May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10
cash per unit (for a total cost of $20,000).
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/68. The goods cost Allied $15,e0e.
May 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores
the units, which cost $1,250, to its inventory.
May 8 Macy discovers that 200 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 $300 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 the approprlate Journal entrles 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 unlts for resale. (If no entry Is required for a transactlon/event,
select "No Journal entry requlred" In the first account fleld.)
Answer is not complete.
No
Date
General Journal
Debit
Credit
2
May 05
Merchandise inventory
21,000
Accounts payable
21,000
3
May 07
Accounts payable
1,750
Merchandise inventory
1,750
4
May 08
Accounts payable
300
Merchandise inventory
300
May 15
Accounts payable
18,950
Cash
18,571
Merchandise inventory
379
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