Allied Merchandisers was organized on May 1 Macy Co. is a major customer (buyer) of Allied (seller) products. May Allied sade its first and only purchase of Inventory for the period on May 3 for 2,000 units at a price of $11 cash per unit (for a total cost of $22,000). s Allied sold 1,000 of the units in Inventory for $15 per unit (invoice total $15,000) to Macy Co. under credit terms 2/10, 1/60. The goods cost Allied $11,000 7 Macy returns 100 units because they did not fit the customer's needs (involce amount: $1,500). Allied restores the units, which cost $1,100, to its inventory 8 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 $700 to compensate for the damage. 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method View transaction ist Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 2.000 units at a price of $11 cash per unit (for a total cost of $22,000) Nobel tror debts before credits General Journal Debit Credit Clear entry View 12 of 5 Next >