Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. allied merchandisers was organized on may 1. macy

Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of...

90.2K

Verified Solution

Question

Accounting

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 1,000 units at a price of $7 cash per unit (for a total cost of $7,000).
May 5 Allied sold 500 of the units in inventory for $11 per unit (invoice total: $5,500) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $3,500.
May 7 Macy returns 50 units because they did not fit the customers needs (invoice amount: $550). Allied restores the units, which cost $350, to its inventory.
May 8 Macy discovers that 50 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 $150 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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A highway department is studying the relationship between traffic flow and speed. The following model has...

Statistics
Q

In a controlled laboratory environment, independent random samples of 10 adults and 10 children were tested...

Statistics
Q

The American Bankers Association reported that, in a sample of 120 consumer purchases in France, 58...

Basic Math
Q

What is the most likely reason Andrew Carnegie had libraries built?A He wanted to make...

Biology
Q

s an early childhood professional building a home school connection is an important part teaching...

Biology
Q

2 Choose correct relation for given i and V graph i photoelectric current V Accelerating...

Physics
Q

Use substitution to find the indefinite integral Sp p 5 dp 18

Calculus
Q

en table indicates the transactions for one teller for one e probability that a customer...

Calculus
Q

Amanda uses a delivery van in her business. The adjusted basis is $21,000, and the...

Accounting
Q

A debit balance in an expense account represents.. A) accrued revenue B) accrued expense C)...

Accounting
Q

Applied overhead costs are charged to ________________.

Accounting
Q

Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31, 20X4, for...

Accounting