Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. View transaction list Journal entry worksheet 2 3 > 1 7 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Note: Enter debits before credits.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Can you help me with the right journal entries?
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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 $9 cash
per unit (for a total cost of $18,000).
5 Allied sold 1,000 of the units in inventory for $13 per
unit (invoice total: $13,000) to Macy Co. under credit
terms 2/10, n/60. The goods cost Allied $9,000.
7 Macy returns 100 units because they did not fit the
Part 1 of 2
customer's
needs
(invoice
amount:
$1,300).
Allied
7
restores the units, which cost $900, to its inventory.
8 Macy discovers that 100 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 $500 to compensate for the damage.
15 Allied receives payment from Macy for the amount owed on
points
eBook
the
5 purchase;
allowances, and any cash discount.
May
payment
is
net
of
returns,
Hint
Exercise 4-4 Recording sales, sales returns, and sales allowances LO
Print
P2
Prepare journal entries to record the following transactions for Allied assuming it uses a
berpetual inventory system and the gross method.
References
View transaction list
Journal entry worksheet
5
7
>
Allied receives payment from Macy for the amount owed on the May 5
purchase; payment is net of returns, allowances, and any cash discount.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 15
Cash
13,000
Sales discounts
1,800
Accounts receivable
11,200
Record entr
Clear ento
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Graw
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Transcribed Image Text:Done AA A ezto.mheducation.com Ch 04 Ex 4 & 5 A Submit Saved Help Save & Exit Check my work 1 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 $9 cash per unit (for a total cost of $18,000). 5 Allied sold 1,000 of the units in inventory for $13 per unit (invoice total: $13,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $9,000. 7 Macy returns 100 units because they did not fit the Part 1 of 2 customer's needs (invoice amount: $1,300). Allied 7 restores the units, which cost $900, to its inventory. 8 Macy discovers that 100 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 $500 to compensate for the damage. 15 Allied receives payment from Macy for the amount owed on points eBook the 5 purchase; allowances, and any cash discount. May payment is net of returns, Hint Exercise 4-4 Recording sales, sales returns, and sales allowances LO Print P2 Prepare journal entries to record the following transactions for Allied assuming it uses a berpetual inventory system and the gross method. References View transaction list Journal entry worksheet 5 7 > Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Note: Enter debits before credits. Date General Journal Debit Credit May 15 Cash 13,000 Sales discounts 1,800 Accounts receivable 11,200 Record entr Clear ento Viewgeneraliournal Mc Graw Hill Education Prev 1 2 of 2 Next >
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