Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $7 cash per unit (for a total cost of $14,000). May 5 Allied sold 1,000 of the units in inventory for $11 per unit (invoice total: $11,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $7,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,100). Allied restores the units, which cost $700, to its inventory. May 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 $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. 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. Note: 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 4 5 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $7 cash per unit (for a total cost of $14,000). Note: Enter debits before credits. Date May 03 General Journal Debit Credit 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 $7 cash per unit (for a total cost of $14,000). May 5 Allied sold 1,000 of the units in inventory for $11 per unit (invoice total: $11,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $7,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,100). Allied restores the units, which cost $700, to its inventory. May 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 $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. 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. Note: 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 4 5 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $7 cash per unit (for a total cost of $14,000). Note: Enter debits before credits. Date May 03 General Journal Debit Credit
Expert Answer:
Answer rating: 100% (QA)
1 May 5 Macy sold 1000 units to Allied at 11 per unit totaling 11000 Journal Entry Debit Accounts Re... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Why is ultraviolet light, but not infrared light, effective in making certain materials fluoresce?
-
In an article in Accounting and Business Research, Carslaw and Kaplan investigate factors that influence "audit delay" for firms in New Zealand. Audit delay, which is defined to be the length of time...
-
K feet above the ground with an initial velocity of 128 feet per second. The height h, in feet, of the rocket above the ground at t seconds after launch is given by the function h(t) = - 16t +...
-
Financial statements of iPud Ltd are presented below. Additional information 1. Payables includes $5620 (2025) and $5730 (2023) trade accounts payable; the remainder is accrued expenses. Market...
-
Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for...
-
On April 30, 2025, the market price of Seabury Occupational Therapy, Inc.'s common stock was $13 per share and the company declared a 5% stock dividend. The stock was distributed on May 15. Read the...
-
The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per...
-
i) Which species is being oxidized , Which species is being reduced ) Which species is the oxidizing agent CH3CHO (aq) + H2 (g) - CHaCH2OH (aq)
-
a) Use the Product Rule to find the derivative of the given function. b) Find the derivative by multiplying the expressions first. y= (5x+3)x a) Use the Product Rule to find the derivative of the...
-
You perform LPCVD of polysilicon using SiH4 at 610 C with a pressure of 300 mtorr and a gas flow rate of 90 sccm. The resulting highly conformal deposition has a rate of 6.4 nm/min. 4-1. What is the...
-
Q5. Let X be the space of all real polynomials of one variable with |||| S|f(t)\dt. = Put B(f,g) = f f (t)g(t)dt. Show that B is a bilinear form on X which is separately continuous but not jointly...
-
IssueTracking System (ITS) Description An Issue Tracking System (ITS) isa computer software application that manages and maintains lists ofissues, as needed by departments of an organization to help...
-
Explain why criminal justice in the United States is sometimes considered a non system
-
On October 1, 2014, the Dow Jones Industrial Average (DJIA) opened at 17,042 points. During that day it lost 237 points. On October 2 it lost 4 points. On October 3 it gained 209 points. Deter-mine...
-
Two Population Poissons. We can express the two population problem in a regression context using one explanatory variable. Specifically, suppose that \(x_{i}\) only takes on the values of zero and...
-
Derive the likelihood for the tobit type II model. Show that your likelihood reduces to equation (16.5) in the case of uncorrelated disturbance terms. n2. (16.5) -(-)-(-2)/02 L = [] {(p;)" (1 p;...
-
The product-as-a-service business model can generate large profits. Instead of producing and selling a product, the producer is responsible for the product for its entire life. The customer uses the...
Study smarter with the SolutionInn App