Allied Parts was organized on May 1. 2013 and made its first purchase of merchan

Question

Allied Parts was organized on May 1. 2013 and made its first purchase of merchandise on May 3 The purchase was for 1.700 units, at a price of $12 per unit On Way 5 Allied parts sold 1 020 of the units for$16 per unit to Baker C_0 Terms of the sale were 2/10, n/60  On May 7. Baker returns 35/units because they did not fit the customer s needs Allied Parts restores the units to its inventory On May 8. Baker discovers that 85 units are damaged but are still of some use and. therefore, keeps the units Allied Paris sends Baker a credit memorandum for $680 to compensate for the damage On May 15, Baker discovers that 102 units are the wrong color Baker keeps 61 of these units because Allied Paris sends a $122credit memorandum to compensate Baker returns the remaining 41 units to Allied Parts Allied Parts restores the 41 returned units to its inventory Prepare the appropriate journal entries for Baker Co to record the May 5 purchase rind each of the three separate transactions a through c Baker is a retailer trial uses a perpetual inventory system and purchases these units for resale

Explanation / Answer

Date Account title Debit credit may 5 Accounts receivable 16960 sales (1020 *16) 16960 [sales made] cost of goods sold 12240 Inventory    (12* 1020 ) 12240

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