Required information Use the following information for the Exercises below. [The following information applies to...
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Required information 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 Company is a major customer (buyer) of Allied (seller) products. May 3 Allied made its firat and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 canh per unit (for a total cost of $20,000 ). May 5 Allied aold 2,000 of the units in inventory for $14 per dinit (invoice total, $14,000 ) to Macy Cospany under credit terna 2/10,n/60. The goods cont Aliled $10,000. rentores the units, whieh cost $1,000, to its inventory. May 8 Kacy dincovern that 100 unitn are noutfed but are ntili of use and, therefore, keeps the unita. Aliled given a price reduction (allowance) and eredita Kacy's acoounta receivable for $600 to compensate for the damage. May 15 Allied receives payment froe Macy for the amount owed on the May 5 purehase: payment is net of returna, allowances, and any cash discount. Exercise 4-6 (Algo) 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
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