Check my work Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller products, May 3. Allied nade its first and only purchase of inventory for the period on May ) for 3,000 units at a price of $11 cash per unit (for a total cost of $33,000). May 5 Allied sold 1,500 of the units in Inventory for $15 per unit (Invoice totalt $22,500) to Macy Company under credit terns 2/10, 1/60. The goods coat Allied 516,500. May 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount $2,250). Allied restores the units, which cost $1,650, to Ita inventory. May 8 Macy discovers that 150 units are souffed but are still of use and, therefore, keeps the units. Allied gives a price reduction allowance) and credits Macy's accounts receivable for $1.050 to compensate for the damage May 15 Allied receives payment from Hacy for the amount owed on the May 5 purchase payment is net of returns, allowances, and any cash discount. Exercise 4-7 (Algo) Effects of sales transactions on income statement LO P2 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. M Mav 13 Next > Check my work May 8 Macy discovers that 150 units are suffed but are still of use and, therefore, keeps the unita. Allied gives a price reduction allowance) and credits Macy's accounts receivable for $1.050 to May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of return, allowances, and any cash discount. Exercise 4-7 (Algo) Effects of sales transactions on income statement LO P2 Use the above informations, analyze oach transaction by indicating its effects on the income statement-specifically, Identify the accounts and amounts (including or.) for each transaction May 5 Income Statement Components May 3 Increase/Decrease May 7 Increase/Decrease Amount Increase/Decrease Amount Amount Inci Sales Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit O P2 e statement-specifically, identify the ok May 7 Amount Increase Decrease May 8 Increase Decrease Amount May 15 Increase/Decrease Amount Amount ances