Allied Merchandisers was organized on May 1. Macy Company is a major customer(buyer) of Allied (seller) products.May 3 Allied made its first and only purchase of inventory for the period onMay 3 for 2,000 units at a price of $10 cash per unit (for a total costof $20,000).May 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoicetotal: $21,000) to Macy Company under credit terms 2/10, n/60. Thegoods cost Allied $15,000.May 7 Macy returns 125 units because they did not fit the customer's needs(invoice amount: $1,750). Allied restores the units, which cost $1,250,to its inventory.May 8 Macy discovers that 200 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 $300 to compensate for thedamage.May 15 Allied receives payment from Macy for the amount owed on the May 5purchase; payment is net of returns, allowances, and any cash discount.Prepare journal entries to record the following transactions for Allied assuming it uses a perpetualinventory system and the gross method.View transaction listJournal entry worksheet123 47>Allied made its first and only purchase of inventory for the period on May 3 for2,000 units at a price of $10 cash per unit (for a total cost of $20,000).Note: Enter debits before credits.DateGeneral JournalDebitCreditMay 03Record entryClear entryView general journal

Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

purnal entry worksheet 1 2 3 4 5 6 7 > Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). te: Enter debits before credits.

purnal entry worksheet 1 2 3 4 5 6 7 > Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). te: Enter debits before credits.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...

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Screpcap Co. had the following transactions during the first week of June: June 1Purchased merchandise on account from Acme Supply, 2,700, plus freight charges of 160. 1Issued Check No. 219 to Denver Wholesalers for merchandise purchased on account, 720, less 1% discount. 1Sold merchandise on account to F. Colby, 246, plus 5% state sales tax plus 2% city sales tax. June 2Received cash on account from N. Dunlop, 315. 2Made cash sale of 413 plus 5% state sales tax plus 2% city sales tax. 2Purchased merchandise on account from Permon Co., 3,200, plus freight charges of 190. 3Sold merchandise on account to F. Ayres, 211, plus 5% state sales tax plus 2% city sales tax. 3Issued Check No. 220 to Ellis Co. for merchandise purchased on account, 847, less 1% discount. 3Received cash on account from F. Graves, 463. 4Issued Check No. 221 to Penguin Warehouse for merchandise purchased on account, 950, less 1% discount. 4Sold merchandise on account to K. Stanga, 318, plus 5% state sales tax plus 2% city sales tax. 4Purchased merchandise on account from Mason Milling, 1,630, plus freight charges of 90. 4Received cash on account from O. Alston, 381. 5Made cash sale of 319 plus 5% state sales tax plus 2% city sales tax. 5Issued Check No. 222 to Acme Supply for merchandise purchased on account, 980, less 1% discount. Required 1. Record the transactions in a general journal. 2. Assuming these are the types of transactions Screpcap Co. experiences on a regular basis, design the following special journals for Screpcap: (a) Sales journal (b) Cash receipts journal (c) Purchases journal (d) Cash payments journal
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