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 2,800 units at a price of $1e cash per unit (for a total cost of $20,000). 5 Allied sold 1,5ee of the units in inventory for $14 per unit (invoice total: $21,88e) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15,000. 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,758). Allied restores the units, which cost $1,250, to its inventory 8 Macy discovers that 200 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 $389 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. General Journal Credit Date May 03 Debit 20,000 @ Merchandise inventory Cash 20,000 & May 05 21,000 Accounts receivable Sales 21,000 May 07 15,000 Cost of goods sold Merchandise inventory 15.000 May 08 Sales returns and allowances Accounts receivable 300 May 15 | Cash Sales discounts Accounts receivable 18.571 3798 3 mi 18,950 $