3 Seved Part 1 of 2 16.66 points eBook Required information [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 1,000 units at a price of 17 cash per unit (for a total cost of $7,000). May 5 Allied sold See of the units in inventory for $11 per unit (invoice total: $5,500) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $3,500. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount 3550), Allied restores the units, which cost $350, to its inventory. May Macy discovers that se units are scuffed but are still of use and, therefore, keeps the units. Allied gives price reduction (allowance) and credits Macy's accounts receivable for $150 to compensate for the damage. Hay 15 Allied receives payment from Hacy for the amount owed on the Ray 5 purchase; payment is net of retures, allowances, and any cash discount. Hint Print References Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. View transaction list Journal entry worksheet < 2 3 4 5 6 7 first and only purchase of inventory for the period on May 3 for >