Solution 1:
Journal Entries - Allied Merchandisers | |||
Event | Particulars | Debit | Credit |
3-May | Inventory Dr | $24,000.00 | |
To Accounts payable | $24,000.00 | ||
(To record inventory purchase) | |||
5-May | Accounts receivables - Macy Dr | $16,000.00 | |
To Sales revenue | $16,000.00 | ||
(To record sales on account) | |||
5-May | Cost of goods sold Dr | $12,000.00 | |
To Merchandise Inventory | $12,000.00 | ||
(To record cost of goods sold) | |||
7-May | Sales returns and allowances Dr | $1,600.00 | |
To Accounts receivables - Macy | $1,600.00 | ||
(To record sales return) | |||
7-May | Merchandise inventory Dr | $1,200.00 | |
To Cost of goods sold | $1,200.00 | ||
(Being goods returned taken into inventory) | |||
8-May | Sales returns and allowances Dr | $800.00 | |
To Accounts receivables - Macy | $800.00 | ||
(Being allowance given to customer) | |||
15-May | Cash Dr | $13,328.00 | |
Sales discount Dr | $272.00 | ||
To Accounts receivables - Macy | $13,600.00 | ||
(To record collection from customer) |
Journal Entries - Macy Co | |||
Date | Particulars | Debit | Credit |
3-May | No Journal Entry Required | ||
5-May | Inventory Dr | $16,000.00 | |
To Accounts payable | $16,000.00 | ||
(To record purchase of inventory on account) | |||
7-May | Accounts payable Dr | $1,600.00 | |
To Inventory | $1,600.00 | ||
(To record purchase returns) | |||
8-May | Accounts payable Dr | $800.00 | |
To Inventory | $800.00 | ||
(Being allowance received for damaged goods) | |||
15-May | Accounts payable Dr | $13,600.00 | |
To Cash | $13,328.00 | ||
To Inventory | $272.00 | ||
(To record payment to supplier) |
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Required information Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer)...
Required information 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 $12 cash per unit (for a total cost of $24,000). 5 Allied sold 1,000 of the units in inventory for $16 per unit (invoice total: $16,000) to Macy Co. under credit terms 2/10, n/60. The goods...
Allied Merchandisers was organized on May 1 Macy Co. is a major customer (buyer) of Allied (seller) products. May Allied sade 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). s 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, 1/60. The goods cost Allied $11,000...
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 $9 cash per unit (for a total cost of $27,000). 5 Allied sold 1,500 of the units in inventory for $13 per unit (invoice total: $19,500) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied...
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 $10 cash per unit (for a total cost of $20,000). 5 Allied sold 1,see of the units in inventory for $14 per unit (invoice total: 321,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15, 000. 7...
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.May3Allied 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).5Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15,000.7Macy returns 125 units because...
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) 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 $9 cash per unit (for a total...
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 $10 cash per unit (for a total cost of $20,000). 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21, 00e) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15,...
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 $12 cash per unit (for a total cost of $24,000). 5 Allied sold 1,000 of the units in inventory for $16 per unit (invoice total: $16,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied...
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.May3Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000).5Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $5,000.7Macy returns 50 units because...
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 $7 cash per unit (for a total cost of $14,000).5 Allied sold 1,000 of the units in inventory for $11 per unit (invoice total: $11,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $7,000.7 Macy...