ck This window shows your responses and what was marked correct and incorrect from your previous attempt. 0 Required information The following information applies to the questions displayed below.) Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products, awarded cored May 3 Allied made its first and only purchase of inventory for the period on May 3 tor 2,000 units at a price of 510 cash per unit (for a total cost of $20,000). 5 Allied sold 1,500 of the units in inventory for $14 per unit invoice total: $21,000) to Macy Co. under credit terns 2/10, 1/60. The goods cost Allied $15,000. 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. 8 Macy discovers that 200 units are scufted but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage. 15 Allied receives payment from Macy for the amount owed on the May 5 purchase payment is not of returns, allowances, and any cash discount. Prepare the appropriate journal entries for Macy Co. to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system, and purchases these units for resale. (if no entry is required for a transaction/event, setelt "No journal entry required" in the first account field.) No General Journal Credit Date May 03 Debit 20,000 1 3 Merchandise inventory Cash 2,000 2 May 05 21,000 Accounts receivable Sales 3 21,000 3 May 07 1.750 Sales returns and allowances Accounts receivable 1.750 4 May 08 300 Sales returns and allowances Accounts receivable 300