80.2K

Verified Solution

Link Copied!

Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period. Payment Merchandise gros . $ 9400 b. $ 26.600 C 5 83.800 d. 521 000 Terms 2/10, 1/60 1/15 EOM 1/10.30 3/15.45 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 ) for 2,000 units at a price of $8 cash per unit (for a total cost of $16,000). 5 Allied sold 1,000 of the units in Inventory for 512 per unit (invoice totalt $12,000) to Macy Co. under credit terms 2/10, 1/60. The goods cost Allied $8,000. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Allied restores the units, which cost $000, 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 $400 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

Answer & Explanation Solved by verified expert

See Answer