Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) May 3 5 7 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $12 cash per unit (for a total cost of $36,000). Allied sold 1,400 of the units in inventory for $20 per unit (invoice total: $28,000) to Macy Co. under credit terms 2/10, n/60. The goods cost $16,800 to Allied. Macy returns 200 units because they did not fit the customer's needs invoice amount: $4,000). Allied restores the units, which cost $2,400, to its inventory. Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $800 toward the original invoice amount to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. 8 15