Journal entry work sheet

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 3 Allied made its first and only purchase of inventory for the period on May 3 for 2, eee units at a price of $8 cash per unit (for a total cost of $16,000). 5 Allied sold 1, eee of the units in inventory for $12 per unit (invoice total: $12,000) to Macy Co. under credit terms 2/10, n/6e. The goods cost Allied $8,eee. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Allied restores the units, which cost $8ee, 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 $400 to compensate for the damage. 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 5-5 Recording purchases, purchases returns, and purchases allowances LO P1 Journal entry worksheet 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 $8 cash per unit (for a total cost of $16,000). Note: Enter debits before credits. Date General Journal Debit Credit May 03