TB Problem Qu$.1-234($Algo$)$ Preparing a balance sheet

Prepare a December $31$ balance sheet using the following select accounts and amounts.

$\backslash$table$[[,],[$Commission revenue,$30,300],[$Accounts payable,$3,800],[$Accounts receivable,$5,300],[$Total equity,$105,400],[$Equipment$,10,300],[$Advertising expense,$3,500],[$Cash$,7,800],[$Land$,35,300],[$Notes payable,$50,300],[$Supplies$,1,800],[$Salaries expense,$12,300],[$Salaries payable,$1,300],[$Building$,100,300],[,]]$

Balance Sheet

December $31$

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 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 $$8$ cash per unit $($for a total cost of $$16,000).$

May $5$ Allied sold $1,000$ of the units in inventory for $$12$ per unit $($invoice total: $$12,000)$ to Macy Company

under credit terms $\frac{2}{10},\frac{n}{60}.$ The goods cost Allied $$8,000.$

May $7$ Macy returns $100$ units because they did not fit the customer's needs $($invoice 'amount: $$1,200).$ Allied

restores the units, which cost $$800,$ 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 $$400$ 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 $4-6($Algo$)$ Recording sales, sales returns, and sales allowances LO P$2$

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 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.