7. Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products Kay Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $9 cash per unit (for a total cost of $18,0001. May 5 Allied sold 1,000 of the unite in inventory for $13 per unit (involes total: $13,000) to Many Company under credit terms 2/10, n/60. The goode cost Allied $9,000. Hay 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,300). Allied restores the unite, which cost $900, to its inventory. Hay Macy discovers that 100 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 $500 to compensate for the damage. May 15 Allied receives payment from Macy for the amount oved on the Hay 5 purchase; payment is net of returns, allowances, and any cash discount. Prepare the appropriate journal entries for Macy Company 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 5 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $9 cash per unit (for a total cost of $18,000). Note: Enter debts before credits Date May 03 General Journal Debit Credit