Exercise 4 10 Algo Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2
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). May 03 Merchandise inventory 20,000 May 05 Accounts receivable 21,000 May 05 Cost of goods sold 15,000 May 07 Sales returns and allowances 1,750 May 07 Merchandise inventory 1,250 May 08 Sales returns and allowances 300 May 15 Cash
18,570 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). Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Aron.) Aug. 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10,
n/30, FOB destination, invoice dated August 1. No Date General Journal Debit Credit |