2 Part 2 of 3 Required Information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 5 points Skipped 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 1,698 units at a price of $11 cash per unit (for a total cost of $11,080). May 5 Allied sold 58e of the units in inventory for $15 per unit (invoice total: $7,500) to Macy Company under credit terms 2/10, n/60. The cost Allied $5,see. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $750). Allied restores the units, which cost $550, to its inventory. May 8 Macy discovers that se units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $350 to compensate for the damage. 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. eBook Ask Skipped Exercise 4-7 (Algo) Effects of sales transactions Income statement LO P2 eBook Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the accounts and amounts (including + or -) for each transaction. Ask Income Statement Components May 3 Increase/Decrease May 5 Increase/Decrease May 7 Increase/Decrease May 8 Increase/Decrease May 15 Increase/Decrease Amount Amount Amount Amount Amount Sales Print Sales discounts Sales returns and allowances References Net sales Cost of goods sold Gross profit