Required information

$[The$ following information applies $to$ the questions displayed below.$]$

Allied Merchandisers was organized $on$ May $1.$ Macy Company $is$ a major customer $(buyer)of$ Allied $(seller)$ products.

Prepare journal entries $to$ record the following transactions for Allied assuming $it$ uses a perpetual inventory system and the gross

method.

Journal entry worksheet

Allied receives payment from Macy for the amount owed $on$ the May $5$

purchase; payment $is$ net $of$ returns, allowances, and any cash discount.

Note: Enter debits before credits.