Check my Part 1 of 3 Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] 5 points Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products. eBook Hint May 3 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $11 cash per unit (for a total cost of $11,000). May 5 Allied sold 500 of the units in inventory for $15 per unit (invoice total: $7,500) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $5,500. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $750). Allied restores the units, which cost $550, to its inventory. May 8 Macy discovers that 50 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 $350 to compensate for the damage. 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. Ask Print References Exercise 4.6 (Alaol Recording sales sales returns and sales allowances 10 P2 Ask Exercise 4-7 (Algo) Effects of sales transactions on Income statement LO P2 Print Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the accounts and amounts (including - or -) for each transaction. References Income Statement Components May 3 Increase/Decrease May 5 Increase/Decrease May 7 Increase/Decrease May 8 Increase/Decrease May 15 Increase/Decrease Amount Amount Amount Amount Amount Sales Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit View transaction list points Skipped Journal entry worksheet eBook Allied sold 500 of the units in inventory for $15 per unit (invoice total: $7,500) to Macy Company under credit terms 2/10, 1/50. The goods cost $5,500 to Allied. Hint Note: Enter debits before credits. Ask Date General Journal Debit Credit May 05 Print References Record entry Clear entry View general journal 3. Required information Prepare the appropriate journal entries for Macy Company to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system: it purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) Part 3 of 3 View transaction list 4 points Skipped Journal entry worksheet eBook Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Hint Note: Enter debits before credits. Ask Date General Journal Debit Credit May 15 Print References Record entry Clear entry View general journal