Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.

XConnect 11&14 6 Saved Help Save Required information Alied Merchandisers was organized on May 1 Macy Co is a major customer (buyer) of Alied (seller) products. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 5 Allied sold 1,000 of the units in inventory for $13 per unit (invoice total: $13,008) to 7 Macy returns 180 units because they did not fit the customer's needs (invoice anount: 8 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the 15 Allied receives payment from Macy for the anount owed on the May 5 purchase; payment is units at a price of $9 cash per unit (for a total cost of $18,000) Macy Co. under credit terms 2/18, n/68. The goods cost $9,000 to Allied. $1,300). Allied restores the units, which cost $980, to its inventory units. Allied sends Hacy a credit menorandum for $500 toward the original invoice amount to compensate for the danage 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 (Aililed estimates returns using an adjusting entry at each year end)