80.2K

Verified Solution

Link Copied!

please do it all till may 18.

Required information 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 (sellen) products. May Altied ade its first and only purchase of inventory for the period on Kay 3 for 3,0e9 units at a price of $9 cash per unit (for a totat cost of $27,600). Nay 5 Altied sold 1,5ea of the units in inventory for $13 per enit (invoice totali $19,500 ) to Macy Coepany under credit terns 2/10. n/60. The goods cost Altied $13, see. May 7 Hacy returns iso units because they did not fit the custcener's needs (involee anount: $1,950 ). Attied restores the units, which cost $1,350, to its inventory. Hey 8 . Macy discovers that 150 units are scuffed but are stili of use and, therefore, keeps the units. Alifed aives a price ceduction (allowance) and credits Macy's accounts recelvable for 3758 to conper e for the danage. May 15 Allied receives paynent from Macy for the anount oved on the May 5 purchase; payzent 15 net of returns. attowances, and any cash discount. Use the above informations, analyze each transaction by indicating its effects on the income statement-specilically, identify the yecounts and amounts (including + of -) for each transaction

Answer & Explanation Solved by verified expert

See Answer