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

May $3$ Allied nade its first and only purchase of inventory for the period on May $3$ for $1,060$ units at a price of $$10$ cash per unit $($for a total cost of $$10,000).$

May $5$ Allied sold $599$ of the units in inventory for $$14$ per unit $($invoice total: $$7,009)$ to Macy Company under credit terns $\frac{2}{10},\frac{n}{69}.$ The goods cost Allied $$5,090.$

May $7$ Macy returns $50$ units because they did not fit the custoner's needs $($invoice anount: $$700).$ Allied restores the units, which cost $$500,$ to its inventory.

May & Macy discover's that $50$ 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 $$300$ to compensate for the danage.

May $15$ Allied recelves payment from Macy for the amount owed on the May $5$ purchase; payment is net of returns, allowances, and any cash discount.

Prepare journal entrles to record the following transactlons for Allied assuming it uses a perpetual Inventory system and the gross method.

$\backslash$table$[[($x$)$ Answer is not complete.$],[$No$,$Date,Gen,,Debit,Credit$],[1,$May $03,$Merchandise inventory,$0,10,0000,],[,$Cash,$0,,10,0000],[2,$May $05,$Accounts receivable,$0,7,0000,],[,$Sales,$0,,7,0000],[3,$May $05,$Cost of goods sold,$0,5,0000,],[,$Merchandise inventory,$0,,5,0000],[4,$May $07,$Sales returns and allowances,$0,7000,],[,$Accounts receivable,$0,,7000],[5,$May $07,$Merchandise inventory,$0,5000,],[,$Cost of goods sold,$0,,5000],[6,$May $08,$Sales returns and allowances,$0,3000,],[,$Accounts recsivable,$0,,3000],[7,$May $15,$Cash,$0,,],[,$Sales discounts,$0,,],[,$Acoounts recsivable,$0,,]]$