Hello I need help with the following questions rConnect Se

Hello, I need help with the following question(s):

rConnect ? ? ??Secure l https://newconnect.mheducation.com/flow/connect.html Ch 4 Exercises Help Save & Exit Submit Saved Check my work 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 Co. is a major customer (buyer) of Allied (seller) products. Nay 3 Allied made its first and only purchase of inventoy for the period on May 3 for 2,ae0 units at a price of $10 cash Part 1of 2 5.83 pcinis per unit (for a total cost of $20,000) Allied sold 1,se of the units in inventory for $14 per unit (invoice total: $21,008) to Nacy Co. under credit terms 2/10, n/6e. The goods cost Allied $15,eo eBook 7 Nacy returns 125 units because they did not fit the customer\'s needs (invoice amount: 1,752). Allied restores the 8 Macy discovers that 200 units arc scuffed but are still of usc and, thereforc, kecps the units. Allied sends Hacya 15 Alled recetves payment from Nacy for the amcunt owed on the Nay 5 purchase; payment is net of returns, allowances, Hint units, which cost ?1,250, t its inventory credit memorandum for 300 touard the original invoice amount to compensate for the damage. and any cash discount Piint References Exercise 4-4 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. Allied estimates returns using an adjusting entry at each year-end.) Mc Graw

Solution

Date Genral Journal Debit Credit May , 3 Inventory A/c $ 20,000 Cash A/c $ 20,000 (Being Inventory Purchased) Macy Co. A/c (debtors) $ 21000 Sales A/c $ 21000 (Being Goods Sold) Cost of Goods Sold A/c $ 15000 Inventory A/c    $ 15000 (Being COGS Recorded) Sales Return A/c $ 1750 Macy Co A/c (Debtors) $ 1750 (Being Goods Returned from Macy) Inventory A/c $ 1250 Cost of Goods sold A/c $ 1250 (Being Goods Restored )