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 per-petual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of S10 cash per unit (for a total cost of $20,000). 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total $21.000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied S15,000. 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: S1.750). 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 sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage. 15 Allied receives payment from Macy for the amounst owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.