Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of...
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Allied Merchandisers was organized on May Macy Company is a major customer buyer of Allied seller products. May Allied made its first and only purchase of inventory for the period on May for units at a price of $ cash per unit for a total cost of $ May Allied sold of the units in inventory for $ per unit invoice total: $ to Macy Company under credit terms n The goods cost Allied $ May Macy returns units because they did not fit the customers needs invoice amount: $ Allied restores the units, which cost $ to its inventory. May Macy discovers that 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 $ to compensate for the damage. May Allied receives payment from Macy for the amount owed on the May purchase; payment is net of returns, allowances, and any cash discount. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.
Allied Merchandisers was organized on May Macy Company is a major customer buyer of Allied seller products.
May Allied made its first and only purchase of inventory for the period on May for units at a price of $ cash per unit for a total cost of $
May Allied sold of the units in inventory for $ per unit invoice total: $ to Macy Company under credit terms n The goods cost Allied $
May Macy returns units because they did not fit the customers needs invoice amount: $ Allied restores the units, which cost $ to its inventory.
May Macy discovers that 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 $ to compensate for the damage.
May Allied receives payment from Macy for the amount owed on the May purchase; payment is net of returns, allowances, and any cash discount.
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.
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