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  3. may 3 allied made ita first and only purchaso of i

May 3 Allied made ita first and only purchaso of inventory for the period on...

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Accounting

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May 3 Allied made ita first and only purchaso of inventory for the period on May 3 for 2,000 uniti at a price of $8 canh per unit (for a total coat of $16,000 ). May 5 Alifed sold 1,000 of the unite in inventory for $12 per unit (involee total, $12,000 ) to Macy Conpany under eredit terns 2/10,A/60. The goods cost Allied $8,000. May 7 Macy returna 100 units becouse they did not tit the cuatonar'a needa (involee anount $2,200). Alifed reatores the unita, which cost $800, to its inventory. May 1 Hacy discovers that 100 units are scuffed but are atili of une and, therefore, keeps the anita. Alilied gives a price reduction (allowance) and eredits Macy's accounta receivable for $400 to conpensate for the danage. May 15 allied receives payment from Macy for the anount oved on the May 5 purchsse; paynent is net of returns, allowances, and any caah discount. Prepare the appropriate journal entries for Macy Company to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system; it purchases these units for resale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field

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