Help Save & ExitSubm Check my work Required information Use the following inform
ID: 2340583 • Letter: H
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Help Save & ExitSubm Check my work Required information Use the following information for the Exercises below. lled Merchandiser rs was organized on May 1. Macy Co. 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 f the units in inventory for $14 per unit (invoice total: $21,000) to Macy invoice amount: $2,100). 8 Macy discovers that 150 units are scuffed but are stil1 of use and, therefore, keeps the at a price of $10 cash per unit (for a total cost of $30,000) 5 Allied sold 1,500 o co. und er credit terms 2/10, n/60. The goods cost Allied $15,000. 7 Macy returns 150 units because they did not fit the customer's needs ( Allied restores the units, which cost $1,500, to its inventory units. Allied sends compensate for the damage. Macy a credit memorandum for $900 toward the original invoice anount to ied receives payment from Macy for the amount owed on the May 5 purchase: payment is net of returns, allowances, and any cash discount 15 Alli Exercise 4-5 Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journal entries for Macy Co. to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system, and purchases these units for resale. (If no entry is required for a transaction/event select "No journal entry required" in the first account field.) Prev 1 of 1 Next>Explanation / Answer
3-May No journal entry required 5-May Merchandise inventory 21000 =1500*14 Accounts Payable 21000 7-May Accounts Payable 2100 Merchandise inventory 2100 8-May Accounts Payable 900 Merchandise inventory 900 15-May Accounts Payable 18000 Merchandise inventory 360 =18000*2% Cash 17640
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