0 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 Company 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 5 Allied sold 1,000 of the units in inventory for $14 per unit (invoice total: $14,000) to Macy Company under credit terms 2/10, 1/60. The goods cost Allied $10,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,400). Allied restores the units, which cost $1,800, to its inventory. May 8 Macy discovers that 100 units are scuffed but are stilt of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $689 to compensate for May 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. Exercise 4-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journal entries for Macy Company to record each of the May transactions. Macy is a retaller that uses the gross method and a perpetual inventory system: it purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.)