Summary Score: 50/50 Points 100 % (latest 2022/2023) 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 purchas

Score: 50/50 Points 100 % (latest 2022/2023) 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 1. Award: 12.50 out of 12.50 points 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.) No Date General Journal Debit Credit 1 May 03 Merchandise inventory  27,000  Cash  27,000  2 May 05 Accounts receivable  19,500  Sales  19,500  3 May 05 Cost of goods sold  13,500  Merchandise inventory  13,500  4 May 07 Sales returns and allowances  1,950  Accounts receivable  1,950  5 May 07 Merchandise inventory  1,350  Cost of goods sold  1,350  6 May 08 Sales returns and allowances  750  Accounts receivable  750  7 May 15 Cash  16,464  Sales discounts  336  Accounts receivable  16,800  Hint #1 References Worksheet Difficulty: 2 Medium Exercise 4-4 Recording sales, sales returns, and sales allowances LO P2 Learning Objective: 04-P2 Analyze and record transactions for merchandise sales using a perpetual system. 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.) Hints 2018/2/13 Assignment Print View No Date General Journal Debit Credit 1 May 03 Merchandise inventory 27,000 Cash 27,000 2 May 05 Accounts receivable 19,500 Sales 19,500 3 May 05 Cost of goods sold 13,500 Merchandise inventory 13,500 4 May 07 Sales returns and allowances 1,950 Accounts receivable 1,950 5 May 07 Merchandise inventory 1,350 Cost of goods sold 1,350 6 May 08 Sales returns and allowances 750 Accounts receivable 750 7 May 15 Cash 16,464 Sales discounts 336 Accounts receivable 16,800 E xplanation: 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 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. 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  Hint #1 References Worksheet Difficulty: 2 Medium Exercise 4-5 Recording purchases, purchases returns, and purchases allowances LO P1 Learning Objective: 04-P1 Analyze and record transactions for merchandise purchases using a perpetual system. 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.) Hints 2018/2/13 Assignment Print View 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 Merchandise inventory 336 Cash 16,464 E xplanation: May 7: Returned unwanted merchandise. (150 units x $13) = $1,950. May 15: Accounts payable paid for May 5 purchase less R&A. ($19,500 – $1,950 – $750) = $16,800. May 15: Merchandise inventory paid for May 5 purchase less R&A. ($19,500 – $1,950 – $750) x 2% = $336. 2018/2/13 Assignment Print View Score: 50/50 Points 100 % 2018/2/13 Assignment Print View 3. Award: 12.50 out of 12.50 points Exercise 4-8 Inventory and cost of sales transactions in T-accounts LO P1, P2 The following supplementary records summarize Tesla Company’s merchandising activities for year 2017 (it uses a perpetual inventory system). Cost of merchandise sold to customers in sales transactions $ 245,000 Merchandise inventory, December 31, 2016 35,574 Invoice cost of merchandise purchases, gross amount 251,174 Shrinkage determined on December 31, 2017 760 Cost of transportation-in 2,512 Cost of merchandise returned by customers and restored to inventory 2,650 Purchases discounts received 2,009 Purchases returns and allowances 4,300 Record the summarized activities in the T-accounts below. Merchandise Inventory Balance, Dec. 31, 2016  35,574  Cost of sales transactions  245,000  Invoice cost of purchases  251,174  Shrinkage  760  Returns by customers  2,650  Purchases returns and allowances  4,300  Transportation-in  2,512  Purchases discounts received  2,009  Balance, Dec. 31, 2017  39,841 Cost of Goods Sold Cost of sales transactions  245,000  Returns by customers  2,650  Shrinkage  760  Balance, Dec. 31, 2017  243,110 Hint #1 References Worksheet Difficulty: 2 Medium Learning Objective: 04-P2 Analyze and record transactions for merchandise sales using a perpetual system. Exercise 4-8 Inventory and cost of sales transactions in Taccounts LO P1, P2 Learning Objective: 04- P1 Analyze and record transactions for merchandise purchases using a perpetual system. Hints 2018/2/13 Assignment Print View Exercise 4-8 Inventory and cost of sales transactions in T-accounts LO P1, P2 The following supplementary records summarize Tesla Company’s merchandising activities for year 2017 (it uses a perpetual inventory system). Cost of merchandise sold to customers in sales transactions $ 245,000 Merchandise inventory, December 31, 2016 35,574 Invoice cost of merchandise purchases, gross amount 251,174 Shrinkage determined on December 31, 2017 760 Cost of transportation-in 2,512 Cost of merchandise returned by customers and restored to inventory 2,650 Purchases discounts received 2,009 Purchases returns and allowances 4,300 Record the summarized activities in the T-accounts below. Merchandise Inventory Balance, Dec. 31, 2016 35,574 Purchases discounts received 2,009 Invoice cost of purchases 251,174 Purchases returns and allowances 4,300 Returns by customers 2,650 Cost of sales transactions 245,000 Transportation-in 2,512 Shrinkage 760 Balance, Dec. 31, 2017 39,841 F Cost of Goods Sold Cost of sales transactions 245,000 Returns by customers 2,650 Shrinkage 760 Balance, Dec. 31, 2017 243,110 F E xplanation: No further explanation details are available for this problem. 2018/2/13 Assignment Print View Score: 50/50 Points 100 % 2018/2/13 Assignment Print View 4. Award: 12.50 out of 12.50 points Problem 4-3A Computing merchandising amounts and formatting income statements LO C2, P4 Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 32,500 Other (noninventory) assets 130,000 Total liabilities $ 37,538 Common stock 10,000 Retained earnings 99,132 Dividends 8,000 Sales 222,300 Sales discounts 3,401 Sales returns and allowances 14,672 Cost of goods sold 86,585 Sales salaries expense 30,455 Rent expense—Selling space 10,448 Store supplies expense 2,668 Advertising expense 18,896 Office salaries expense 27,788 Rent expense—Office space 2,668 Office supplies expense 889 Totals $ 368,970 $ 368,970 On August 31, 2016, merchandise inventory was $26,228. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs. Invoice cost of merchandise purchases $ 95,550 Purchases discounts received 2,007 Purchases returns and allowances 4,586 Costs of transportation-in 3,900 R equired: 1. Compute the company’s net sales for the year. 2. Compute the company’s total cost of merchand ise purchased for the year. 3. Prepare a multiple-step income statement that includes separate categorie s for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 4. Prepare a single-step income statem ent that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.  Required 1 Required 2  Complete this questions by entering your answers in the below tabs. Compute the company’s net sales for the year. Required 1 Required 2 Required 3 Required 4 Net Sales Sales $ 222,300  Less: Sales discounts  (3,401)  Less: Sales returns and allowances  (14,672)  Net sales $ 204,227  References Worksheet Difficulty: 2 Medium Learning Objective: 04-P4 Define and prepare multiplestep and single-step income statements. 2018/2/13 Assignment Print View Problem 4-3A Computing merchandising amounts and formatting income statements LO C2, P4 Learning Objective: 04-C2 Identify and explain the inventory asset and cost flows of a merchandising company. Problem 4-3A Computing merchandising amounts and formatting income statements LO C2, P4 Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 32,500 Other (noninventory) assets 130,000 Total liabilities $ 37,538 Common stock 10,000 Retained earnings 99,132 Dividends 8,000 Sales 222,300 Sales discounts 3,401 Sales returns and allowances 14,672 Cost of goods sold 86,585 Sales salaries expense 30,455 Rent expense—Selling space 10,448 Store supplies expense 2,668 Advertising expense 18,896 Office salaries expense 27,788 Rent expense—Office space 2,668 Office supplies expense 889 Totals $ 368,970 $ 368,970 On August 31, 2016, merchandise inventory was $26,228. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs. Invoice cost of merchandise purchases $ 95,550 Purchases discounts received 2,007 Purchases returns and allowances 4,586 Costs of transportation-in 3,900 R equired: 1. Compute the company’s net sales for the year. 2. Compute the company’s total cost of merchand ise purchased for the year. 3. Prepare a multiple-step income statement that includes separate categorie s for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 4. Prepare a single-step income statem ent that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.  Required 1 Required 2  Complete this questions by entering your answers in the below tabs. Compute the company’s net sales for the year. Required 1 Required 2 Required 3 Required 4 $ $ Net Sales Sales 222,300 Less: Sales discounts (3,401) Less: Sales returns and allowances (14,672) Net sales 204,227 E xplanation: 3. Co st of goods sold (alternative computation): 2018/2/13 Assignment Print View Merchandise inventory, August 31, 2016 $ 26,228 Total cost of merchandise purchased (from part 2) 92,857 Merchandise available for sale 119,085 Merchandise inventory, August 31, 2017 32,500 Cost of goods sold $ 86,585