# Cash 16464 sales discounts 336 accounts receivable

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Cash 16,464 Sales discounts 336 Accounts receivable 16,800 Explanation: May 3: Purchased goods. (3,000 units x \$9). = \$27,000. May 5: Sold goods on credit. (1,500 units x \$13). = \$19,500. May 5: Record cost of sale. (1,500 units x \$9). = \$13,500. May 7: Accepted returns. (150 units x \$13). = \$1,950. May 7: Returned goods to inventory. (150 units x \$9). = \$1,350. May 15: Sales discount received payment within discount period. (\$19,500 – \$1,950 – \$750) x 2% = \$336. May 15: Accounts receivable balance as of May 15. (\$19,500 – \$1,950 – \$750) = \$16,800.
2018/2/13 Assignment Print View 1/3 Score: 50/50 Points 100 % Use the following information for the Exercises below. 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 \$13,500. 7 Macy returns 150 units because they did not fit the customer’s needs (invoice amount: \$1,950). Allied restores the units, which cost \$1,350, to its inventory. 8 Macy discovers that 150 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for \$750 toward the original invoice amount 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. References Section Break Use the following information for the Exercises below.
2018/2/13 Assignment Print View 2/3 2. Award: 12.50 out of 12.50 points Exercise 4-5 Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journal entries for Macy Co. to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system, and purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 May 03 No journal entry required 2 May 05 Merchandise inventory 19,500 Accounts payable 19,500 3 May 07 Accounts payable 1,950 Merchandise inventory 1,950 4 May 08 Accounts payable 750 Merchandise inventory 750 5 May 15 Accounts payable 16,800 Cash 16,464 Merchandise inventory 336