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Allied Merchandisers was organized on May $1.$ Macy Company is a major customer $($buyer$)$ of Allied $($seller$)$ products.

$16\mathrm{.}66$

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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.

$\backslash$table$[[$Income Statement Components,May $3,$May $5,$May $7,$May $8,$May $15],[$Increase$/$Decrease$,$Amount,$\backslash$table$[[$Increase$/$Decrease$]],$Amount,Increase$/$Decrease$,$Amount,Increase$/$Decrease$,$Amount,Increase$/$Decrease$,$Amount$],[$Sales$,4\mathrm{.}20-20,,(+)$ increase,$7,000,,,,,,],[$Sales discounts,,$,,,,,,,(+)$ increase,$],[$Sales returns and allowances,,,$4\mathrm{.}20,,(+)$ increase,$700,+1$ increase,$300,,],[$Net sales,$,,,,5.,,,,(-)$ decrease,$],[$Cost of goods sold,$+20-1,+2\mathrm{.}2,,,,,,,,],[$Gross profit,$420-1,,(+)$ increase,$2,000,(-)$ decrease,$200,(-)$ decrease,$300,(-)$ decrease,$]]$

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