Allied Merchandisers was organized on May 1. Macy Co. 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 3,000 unito at a price of $7 cash per unit for a total cost of $21,000). 5 Allied sold 1,500 of the units in inventory for $11 per unit invoice total: $16,500) to Macy Co. under credit terms 2710, 1/60. The goods cost Allied $10,500. 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $1,650). Allied restores the units, which cost $1,050, to its inventory. Macy discovers that 150 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 $450 to compensate for the damage 15 Allied receives payment from Macy for the amount owed on the May 5 purchase payment is not of returns, allowances, and any cash discount. Journal entry worksheet