# May 3 Allied made its first and only purchase of inventory for the period on May...

###### Question:

 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 $12 cash per unit (for a total cost of$36,000). 5 Allied sold 1,500 of the units in inventory for $16 per unit (invoice total:$24,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $18,000. 7 Macy returns 150 units because they did not fit the customer’s needs (invoice amount:$2,400). Allied restores the units, which cost $1,800, 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$1,200 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.

2 3 4 5 6 7 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $12 cash per unit (for a total cost of$36,000). Note: Enter debits before credits. Date General Journal Debit Credit May 03
3 4 5 6 7 Allied sold 1,500 of the units in inventory for $16 per unit (invoice total:$24,000) to Macy Co. under credit terms 2/10, n/60. Note: Enter debits before credits. General Journal Debit Credit Date May 05
< 1 2 4 5 6 7 Record the cost of goods sold. Note: Enter debits before credits. Date General Journal Debit Credit May 05
< 1 2 3 4 5 6 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $2,400). Note: Enter debits before credits. Date General Journal Debit Credit May 07 < 1 2 3 4 5 6 7 Allied restores the units, which cost$1,800, to its inventory. Note: Enter debits before credits. Date General Journal Debit Credit May 07