Required Information Use the following information for the Exercises below. (The following information applies to the questions displayed below) Alied Merchandisers was organized on May 1. Macy Co. 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 $10 cash per unit (for a total cost of $20,000). 5 Allied sold 1,000 of the units in inventory for $14 per unit (invoice total: $14,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $10,000. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,400). Allied restores the units, which cost $1,800, to its inventory. 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 $600 to compensate for the damage. 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 4-4 Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. View transaction list Journal entry worksheet 3 4 5 6 Allied made its first and only purchase of inventory for the period on May 3 2.000 units at a price of $10 cash per unit (for a total cost of $20.000). Note: Enter debits before credits General Journal Debit Credit May 03 Record entry Cherry View general journal 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 Co. 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 cash per unit (for a total cost of $2e,eee). 5 Allied sold 1,000 of the units in inventory for $14 per unit (imice total: $14,09) to Nacy Co. teras 2/10, 1/6e. The goods cost Allied $1e,eee. 7 Macy returns 100 units because they did not fit the customer's needs invicemount $1,400). ALLA the units, which cost $1,eee, to its inventory. 8 Macy discovers that 100 units are scuffed but are still of use and therefore, keeps the units. All price reduction (allowance) and credits Macy's accounts receivable for $600 to compensate for the da 15 Allied receives payment from Macy for the amount owed on the May Spurchase payment is net o allowances, and any cash discount. Exercise 4-4 Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and method View transaction list Journal entry worksheet 1 Allied sold 1,000 of the units in inventory for $14 per unit (invoice total $14,000) to Macy Co. under credit terms 2/10, 1/60. General Journal Debit Credit May 05 15 Allied receives payment from Macy for the amount allowances, and any cash discount. Print Exercise 4-4 Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory! method. View transaction list Journal entry worksheet