2 Return to question 15 points Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below) Allied Merchandisers was organized on May 1, Macy Co. is a major customer (buyer) of Allied (seller) products, May Allied made its first and only purchase of Inventory for the period on May ) for 2,000 units at a price of 55 cash per unit (for a total cost of $16,000). 5 Allied sold 1,000 of the units in Inventory for $12 per unit (invece totali $12,000) to Macy Co. under credit terms 2/10, 1/60. The goods cost Allled $8,000. 7 Macy returns 100 units because they did not fit the customer's needs (involce amount: $1,200). Allied restores the units, which cost $800, to its inventory. 8 Macy discovers that 100 units are scuffed but are still of use and therefore, keeps the units. Allied gives - price reduction (allowance) and credits Macy's accounts receivable for $400 to compensate for the damage. 15 Allied receives payment from Macy for the mounted on the May 5 purchase payment is net of returns, allowances, and any cash discount. 2. Required information No Date General Journal Debit Credit 1 May 03 16,000 Merchandise inventory Cash OO 16,000 2 May 05 12,000 Accounts receivable Sales 12,000 3 May 05 8,000 Cost of goods sold Merchandise inventory 8,000 4 May 07 1.200 Sales returns and allowances Accounts receivable 1,200 800 5 May 07 Merchandise inventory Cost of goods sold 800 Prev 2 of 4 ! Next > 4 May 07 1,200 Sales returns and allowances Accounts receivable 1,200 5 points 5 May 07 800 Merchandise inventory Cost of goods sold 800 6 May 08 400 . Sales returns and allowances Accounts receivable ols 400 7 May 15 6,000 Cash Sales discounts Accounts receivable 12,000