Required information [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 Aliled made Lts Iirst and only purchase of inventory for the
period on May 3 for 3,000 unitu at a price of $11 cash per unit (for a total cont of $33 , 000 ).
May 5 N11ied sold 1,500 of the unite in Inventory for $15 por unit (tavoice total: $22 , 500 ) to
Macy conpany under credit terms 2/10 , n /60 . The goods cost Al1ied $16 , 500 . Kay 7 Macy
returns 150 units because they did not fit the customer'g needs (involce amount: $2 , 250 . Allied
restores the units, which cost $1 , 650 , to its inventory. May 8 Macy discovers that 150 units are
seuffed bat are still of use and, therefore, keops the bnits. MIlled gives a price reduction
(allowance) and credits Macy's accounts receivable for $1 , 050 to conpenaate for the damage.
May is Allied receives paynent from Macy for the amount owed on the May 5 purchase;
payment is net of retarns, allovances, and any eash discount. 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. (If no entry is
required for a transaction/efrent, select "No journal entry required" in the first account field.).
Required information -The following information applies to the questio (10).pdf
1. Required information [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 Aliled made Lts Iirst and only purchase of inventory for the
period on May 3 for 3,000 unitu at a price of $11 cash per unit (for a total cont of $33 , 000 ).
May 5 N11ied sold 1,500 of the unite in Inventory for $15 por unit (tavoice total: $22 , 500 ) to
Macy conpany under credit terms 2/10 , n /60 . The goods cost Al1ied $16 , 500 . Kay 7 Macy
returns 150 units because they did not fit the customer'g needs (involce amount: $2 , 250 . Allied
restores the units, which cost $1 , 650 , to its inventory. May 8 Macy discovers that 150 units are
seuffed bat are still of use and, therefore, keops the bnits. MIlled gives a price reduction
(allowance) and credits Macy's accounts receivable for $1 , 050 to conpenaate for the damage.
May is Allied receives paynent from Macy for the amount owed on the May 5 purchase;
payment is net of retarns, allovances, and any eash discount. 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. (If no entry is
required for a transaction/efrent, select "No journal entry required" in the first account field.)
![Required information [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 Aliled made Lts Iirst and only purchase of inventory for the
period on May 3 for 3,000 unitu at a price of $11 cash per unit (for a total cont of $33 , 000 ).
May 5 N11ied sold 1,500 of the unite in Inventory for $15 por unit (tavoice total: $22 , 500 ) to
Macy conpany under credit terms 2/10 , n /60 . The goods cost Al1ied $16 , 500 . Kay 7 Macy
returns 150 units because they did not fit the customer'g needs (involce amount: $2 , 250 . Allied
restores the units, which cost $1 , 650 , to its inventory. May 8 Macy discovers that 150 units are
seuffed bat are still of use and, therefore, keops the bnits. MIlled gives a price reduction
(allowance) and credits Macy's accounts receivable for $1 , 050 to conpenaate for the damage.
May is Allied receives paynent from Macy for the amount owed on the May 5 purchase;
payment is net of retarns, allovances, and any eash discount. 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. (If no entry is
required for a transaction/efrent, select "No journal entry required" in the first account field.)](https://image.slidesharecdn.com/requiredinformation-thefollowinginformationappliestothequestio10-230312000647-bec9ff97/85/required-information-the-following-information-applies-to-the-questio-10pdf-1-320.jpg)
