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Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Allied maje its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000 ). Note: Enter debits before credits. Journal entry worksheet (1) 23 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 $600 to compensate for the damage. Note: Enter debits before credits. Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,400 ). Note: Enter debits before credits. 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 itn firet and only purchase of inventory for the period on ray 3 for 2 , 000 unita at a price of $10 canh per unit (for a total cost of $20,000 ). Nay 5 Allied sold 1,000 of the units in inventory for $14 per unit (Involce total, $24,000 ) to Macy Company under eredit termn 2/10,n/60. The goods cont Aliled $10,000. May 7 Macy roturns 100 unite because they did not fit the customer's needs (involce amount, 51 , 400 ). Aliled restores the uniti, which cost $1,000, to ite investory. May 8 Macy discovers that 100 units are ecuffed but are stili of use and, therefore, keeps the units. Alited given a price reduction (allowance) and eredits Macy'a accounts receivable for 5600 to compensate for the damage. May 15 Mllied receives payment fron Macy for the anount owed on the May 5 purchasej payment is net of returns, allowances, and any cash discount. Journal entry worksheet Allied sold 1,000 of the units in inventory for $14 per unit (invoice total: $14,000 ) to Macy Company under credit terms 2/10,n/60. Note: Enter debits before credits. Journal entry worksheet 1 7 Allied restores the units, which cost $1,000, to its inventory. Note: Enter debits before credits. Journal entry worksheet (1) 2 (2) 3445 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

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