Exercise 4-5 Recording sales returns and allowances LO P2 Allied Parts was organized on May 1, 2015, and made its first purchase of merchandise on May 3. The purchase was for 1,200 units at a price of $8 per unit. On May 5, Allied Parts sold 720 of the units for $12 per unit to Baker Co. Terms of the sale were 2/10, n/60 a. On May 7, Baker returns 252 units because they did not fit the customer's needs. Allied Parts restores the units to its inventory. the units. Allied Parts sends Baker a credit memorandum for $240 to compensate for the damage. Allied Parts sends a $92 credit memorandum to compensate. Baker returns the remaining 29 units to b. On May 8, Baker discovers that 60 units are damaged but are still of some use and, therefore, keeps c. On May 15, Baker discovers that 72 units are the wrong color. Baker keeps 43 of these units because Allied Parts. Allied Parts restores the 29 returned units to its inventory. Prepare entries for Allied Parts to record the May 5 sale and each of the above separate transactions using a perpetual inventory system. View transaction list