Allied Merchandisers was organized on May 1. Macy Company 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 3,830 units at a price of $8 cash per unit (for a total cost of $24,638 ). May 5 Allied sold 1,560 of the units in inventory for $12 per unit (invoice total: $18,68 ) to Macy company under credit terms 2/1, n/68. The goods cost Allied $12,630. May 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: \$1,860). Allied restores the units, which cost $1,230, to its inventory. May 8 Macy discovers that 150 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 $680 to compensate for the damage. May 15 Allied receives payment from Macy for the amount oved on the May 5 purchase; payment is net of returns, allowances, and any cash discount. xercise 5-6 (Algo) Recording sales, sales returns, and sales allowances LO P2 repare journal entries to record the following transactions for Allied assuming it uses a perpetual Inventory system and the gross nethod