[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. ercise 4-6 (Algo) Recording sales, sales returns, and sales allowances LO P2 are journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system the gross method. View transaction list
[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. ercise 4-6 (Algo) Recording sales, sales returns, and sales allowances LO P2 are journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system the gross method. View transaction list
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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...
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![[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 4-6 (Algo) Recording sales, sales returns, and sales allowances LO P2
repare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system
nd the gross method.
View transaction list
Journal entry worksheet
1 2 3
Note: Enter debits before credits.
Date
May 15
Cash
5
Allied receives payment from Macy for the amount owed on the May 5
purchase; payment is net of returns, allowances, and any cash discount.
Record entry
General Journal
6
Clear entry
7
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe71304b-9124-4d47-8bbd-c0a7dc11a3d4%2F601f71c8-b278-436b-8a9b-5bd4aa3e57c8%2Frayb71_processed.png&w=3840&q=75)
Transcribed Image Text:[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 4-6 (Algo) Recording sales, sales returns, and sales allowances LO P2
repare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system
nd the gross method.
View transaction list
Journal entry worksheet
1 2 3
Note: Enter debits before credits.
Date
May 15
Cash
5
Allied receives payment from Macy for the amount owed on the May 5
purchase; payment is net of returns, allowances, and any cash discount.
Record entry
General Journal
6
Clear entry
7
Debit
Credit
View general journal
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