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 3,000 units at a price of $10 cash per unit (for a total cost of $30,000). May 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Company under credit teres 2/10, n/60. The goods cost Allled $15,000. Hay 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $2,100). Allied restores the units, which cost $1,500, to its inventory. May 8 Macy discovers that 150 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Hacy's accounts receivable for $900 to compensate for the damage. Allied receives payment from Hacy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Hay 15 Exercise 4-6 (Algo) Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.

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 3,000 units at a price of $10 cash per unit (for a total cost of $30,000). May 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Company under credit teres 2/10, n/60. The goods cost Allled $15,000. Hay 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $2,100). Allied restores the units, which cost $1,500, to its inventory. May 8 Macy discovers that 150 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Hacy's accounts receivable for $900 to compensate for the damage. Allied receives payment from Hacy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Hay 15 Exercise 4-6 (Algo) Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Repost the complete question and add sub-parts to be sol
*Question:- r what is anticulation of the Pinarcial statement meons Elaborate.
help please, the answers I put are not correct
Read and interpret abalance sheet.
What do the letter FIFO Stand for?
What is Contiguous data?
What exactly are reversing entries, and why do they exist?
Please do not give answer in image formate
What goes in what, like what do I put on Collum a,b,c, etc I'm confused where to put the data
What information is required in a proxy statement?
What is indirect quotation.Explain with example
ne NPV of go ərket..(Do nc ID