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 2,000 units at a price of $10 cash per unit (for a total cost of $20,000 ). May 5 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 Alilied $15,000. May 7 Macy returns 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. May 8 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 danage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. \& Answer is not complete. \begin{tabular}{|c|c|c|c|c|c|} \hline No & Date & Gen & & Debit & Crodit \\ \hline \multirow[t]{2}{*}{1} & May 03 & Merchandise inventory & 2) & 20,000 & \\ \hline & & Cash & (2) & & 20,000 \\ \hline \multirow[t]{3}{*}{2} & May 05 & Accounts receivable & 2 & & 21,000 \\ \hline & & Sales & & 21,000 & \\ \hline & & + & & & \\ \hline \multirow[t]{2}{*}{3} & May 05 & Cost of goods sold & 0 & 15,000 & \\ \hline & & Merchandise inventory & 0 & & 15,0000 \\ \hline \multirow[t]{2}{*}{4} & May 07 & Sales retums and allowances & 0 & 1,750 & \\ \hline & & Accounts recelvable & 0 & & 1,7500 \\ \hline \multirow[t]{2}{*}{5} & May 07 & Merchandise inventory & 0 & & 1,250 \\ \hline & t. & Cost of goods sold & ( ) & 1,250 & \\ \hline \multirow[t]{2}{*}{6} & May 08 & Sales retums and allowances & 0 & 3000 & \\ \hline & & Accounts receivable & 0 & & 3000 \\ \hline \multirow[t]{3}{*}{7} & May 16 & Cash & 0 & 20,640 & \\ \hline & & Accounts receivable & & & 21,000 \\ \hline & & Sales discounts & & 360 & \\ \hline \end{tabular}