Required information[The following information applies to the questions displayed below.)ABC Merchandisers was organized on May 1. MNM Co. Is a major customer (buyer) of ABC (seller)products.May 3 ABC made its first and only purchase of inventory for the period on May 3 for 1,800 units at aprice of $12 cash per unit (for a total cost of $12,000).5 ABC sold 588 of the units in inventory for $16 per unit (invoice total: $8,000) to MNM Co.under credit terns 2/18, n/68. The goods cost ABC $6,800.7 MNM returns se units because they did not fit the customer's needs (invoice amount: $880). ABCrestores the units, which cost $688, to its inventory.8 MNM discovers that 50 units are scuffed but are still of use and, therefore, keeps the units.ABC gives a price reducticn (allowance) and credits MNM's accounts receivable for $400 tocompensate for the damage.15 ABC receives paynent fron MNM for the anount owed on the May 5 purchase; payment is net ofreturns, allowances, and any cash discount.Prepare the appropriate Journal entries for MNM Co. to record each of the May transactions. MNM Is a retaller that uses thegross method and a perpetual Inventory system, and purchases these units for resale. (If no entry is required for atransaction/event, select "No Journal entry required" In the first account field.)View transaction latJournal entry worksheet2 3 415>Allied made its first and only purchase of inventory for the period on May 3 for1,000 units at a price of $12 cash per unit (for a total cost of $12,000).Note: Enter debits before credits.DateGeneral JournalDebitCreditMay 03Record entryClear entryVlew general Journal Required Information[The following information applies to the questions displayed below.]ABC Merchandisers was organized on May 1. MNM Co. Is a major customer (buyer) of ABC (seller)products.May 3 ABC made its first and only purchase of inventory for the period on May 3 for 1,000 units at aprice of $12 cash per unit (for a total cost of $12,000).5 ABC sold 500 of the units in inventory for $16 per unit (invoice total: $8,000) to MNM Co.under credit terns 2/10, n/68. The goods cost ABC $6,008.7 MNM returns se units because they did not fit the customer's needs (invoice amount: $880). ABCrestores the units, which cost $600, to its inventory.8 MNM discovers that 50 units are scuffed but are still of use and, therefore, keeps the units.ABC gives a price reduction (allowance) and credits MNM's accounts receivable for $480 tocompensate for the damage.15 ABC receives paynent from MNM for the amount owed on the May 5 purchase; payment is net ofreturns, allowances, and any cash discount.Prepare Journal entries to record the following transactions for ABC assuming It uses a perpetual Inventory system and thegross method.Vlew trannaction llstJournal entry worksheet2 3 457Allied made its first and only purchase of inventory for the period on May 3 for1,000 units at a price of $12 cash per unit (for a total cost of $12,000).Note: Enter debits before credits.DateGeneral JournalDebitCreditMay 03Record entryClear entryVlew general Journal

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Description: Required information[The following information applies to the questions displayed below.)ABC Merchandisers was organized on May 1. MNM Co. Is a major customer (buyer) of ABC (seller)products.May 3 ABC made its first and only purchase of inventory fo