2 art 2 of 2 int Required information 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. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). 5 Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $5,000. 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory. 8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the unita. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $300 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. 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; 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.) Answer is not complete. No 1 Date May 03 General Journal Merchandise inventory Cash 2 May 05 Accounts receivable Sales 3 May 07 4 May 08 Sales retums and allowances Accounts receivable Merchandise inventory Cost of goods sold 5 May 15 Cash Sales discounts Accounts receivable 00 00 00 Debit Credit 10,000 O 10,000 00 7,000 - 7,000 O 000 700 700- 500 O 500 O 5,800 O