(Solved): How do I solve ? Journal entry worksheet Allied receives payment from Macy for the amount owed on t ...

Journal entry worksheet Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Note: Enter debits before credits. Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 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 on May 3 for 2,000 units at a price of $\$8$ cash per unit (for a total cost of $\$16,000$ ). May 5 Allied sold 1,000 of the units in inventory for $\$12$ per unit (invoice total: $\$12,000$ ) to Macy Company under credit terms $2/10,\mathrm{n}/60$. The goods cost Allied $\$8,000$. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: \$1,200). Allied restores the units, which cost $\$800$, to its inventory. May 8 Macy discovers that 100 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 $\$400$ to compensate for the damage. May 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. Exercise 4-6 (Algo) Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.