Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied...
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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 2,000 units at a price of sie cash per unit (for a total cost of $20,000). May 5 May 7 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $15,000. Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. May 8 Macy discovers that 200 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 $300 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Exercise 4-8 (Static) Recording purchases, purchases returns, and purchases allowances LO P1 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/event. select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 mework i vorrico BR ISTATIC Required information View transaction list gross method and a perpetual inventory system; it purchases these units for resale. (If no entry is required for a transaction/event select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 Date May 03 3 4 Note: Enter debits before credits. Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). Record entry 5 cae rom General Journal Clear entry Debit wirrnatoe annu Credit View general journal View transaction list Journal entry worksheet < 1 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. The goods cost $15,000 to Allied. Note: Enter debits before credits. Date May 05 3 Record entry 4 5 General Journal Clear entry Debit Credit View general journal vorrice AK INTTirs warririnn www Required information gross method and a perpetual inventory system; it purchases these units for resale. Of no entry is required for a transaction/event select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Note: Enter debits before credits. Date May 07 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. 5 Record entry General Journal macae ramine a ninacne annwanros Clear entry Debit Credit View general journal orrico LR INT Required information View transaction list gross method and a perpetual inventory system; it purchases these units for resale. (If no entry is required for a transaction/event. select "No journal entry required in the first account field.) Journal entry worksheet 1 2 3 www Note: Enter debits before credits. Date May 08 Record entry 5 Macy discovers that 200 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 $300 to compensate for the damage. sex ranne ann nim General Journal Clear entry Debit Credit View general journal vorrico K INTTIC warnrning Durena Required information gross method and a perpetual inventory system; it purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Date May 15 y Record entry wwwrnacet ronime ann nurrnacne annwanrat General Journal Clear entry Debit Credit View general journal 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 2,000 units at a price of sie cash per unit (for a total cost of $20,000). May 5 May 7 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $15,000. Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. May 8 Macy discovers that 200 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 $300 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Exercise 4-8 (Static) Recording purchases, purchases returns, and purchases allowances LO P1 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/event. select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 mework i vorrico BR ISTATIC Required information View transaction list gross method and a perpetual inventory system; it purchases these units for resale. (If no entry is required for a transaction/event select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 Date May 03 3 4 Note: Enter debits before credits. Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). Record entry 5 cae rom General Journal Clear entry Debit wirrnatoe annu Credit View general journal View transaction list Journal entry worksheet < 1 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. The goods cost $15,000 to Allied. Note: Enter debits before credits. Date May 05 3 Record entry 4 5 General Journal Clear entry Debit Credit View general journal vorrice AK INTTirs warririnn www Required information gross method and a perpetual inventory system; it purchases these units for resale. Of no entry is required for a transaction/event select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Note: Enter debits before credits. Date May 07 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. 5 Record entry General Journal macae ramine a ninacne annwanros Clear entry Debit Credit View general journal orrico LR INT Required information View transaction list gross method and a perpetual inventory system; it purchases these units for resale. (If no entry is required for a transaction/event. select "No journal entry required in the first account field.) Journal entry worksheet 1 2 3 www Note: Enter debits before credits. Date May 08 Record entry 5 Macy discovers that 200 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 $300 to compensate for the damage. sex ranne ann nim General Journal Clear entry Debit Credit View general journal vorrico K INTTIC warnrning Durena Required information gross method and a perpetual inventory system; it purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Date May 15 y Record entry wwwrnacet ronime ann nurrnacne annwanrat General Journal Clear entry Debit Credit View general journal
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Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
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