Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products. May 3 May 5 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). May 7 May 8 May 15 Required: Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $15,000. Macy retums 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. 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 $300 to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of retums, allowances, and any cash discount. 1. Prepare the appropriate joumal entries for Macy Company to record each of the May transactions. Macy uses the gross method and a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Prepare the appropriate joumal entries for Allied Merchandisers to record each of the May transactions. Allied uses the gross method and a perpetual inventory system.