Question

Part B is the pne with the red text in the question. Thanks !

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 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 3,000 units at a price of $8 cash per unit (for a total cost of $24,000). 5 Allied sold 1,500 of the units in inventory for $12 per unit (invoice total: $18,000) to Macy Co. under credit terms 2/10, 1/60. The goods cost Allied $12,000. 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $1,800). Allied restores the units, which cost $1,200, to its inventory. 8 Macy discovers that 150 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 fron Macy for the amount owed on the May 5 purchase payment is net of returns, allowances, and any cash discount.

Answer 1

Allied:
		Debit	Credit
May 03	Merchandise inventory	24000
	Cash		24000
May 05	Accounts receivable	18000
	Sales		18000
May 05	Cost of goods sold	12000
	Merchandise inventory		12000
May 07	Sales returns and allowances	1800
	Accounts receivable		1800
May 07	Merchandise inventory	1200
	Cost of goods sold		1200
May 08	Sales returns and allowances	600
	Accounts receivable		600
May 15	Cash	15288
	Sales discounts	312		=15600*2%
	Accounts receivable		15600

Part-B

Macy:
		Debit	Credit
May 03	No journal entry required
May 05	Merchandise Inventory	18000
	Accounts Payable		18000
May 07	Accounts Payable	1800
	Merchandise Inventory		1800
May 08	Accounts Payable	600
	Merchandise Inventory		600
May 15	Accounts Payable	15600
	Merchandise Inventory		312	=15600*2%
	Cash		15288