Question

Check my work Required information [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 2,000 units at a price of $11 cash per unit (for a total cost of $22,000). 5 Allied sold 1,000 of the units in inventory for $15 per unit (invoice total: $15,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $11,000. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,500). Allied restores the units, which cost $1,100, to its inventory. 8 Macy discovers that 100 units are scuffed but are still of use and therefore, keeps the units. Allied sends Macy a credit memorandum for $700 toward the original invoice amount 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. Dronare iournalentriostorecord the following transactions for Allied accumina it usornonotulinyontor Custom and the aroc

Answer 1

		Debit	Credit
May 03	Merchandise inventory	22000
	Cash		22000
May 05	Accounts receivable	15000
	Sales		15000
May 05	Cost of goods sold	11000
	Merchandise inventory		11000
May 07	Sales returns and allowances	1500
	Accounts receivable		1500
May 07	Merchandise inventory	1100
	Cost of goods sold		1100
May 08	Sales returns and allowances	700
	Accounts receivable		700
May 15	Cash	12544
	Sales discounts	256		=12800*2%
	Accounts receivable		12800