GLUWUS DARWurth H w Dashboard Wine keybank Saved Help Save & Exit Submit Check my work Allied Merchandisers was organized on May 1. Macy Co, 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 $1l cash per unit (for a total cost of $22,000). 5 Allied sold 1,000 of the units in inventory for $15 per unit (invoice total: $15,000) to Macy co. under credit torna 2/10, 1/60. The goods goat Allied $11,000. 7 Maey returns 100 units because they did not fit the customer's needs (invoice amount: $1,500). Allied restores the units, which cost $1,100, to its inventory. B Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the unita. Allied gives a price reduction (allowance) and credit Macy's accounts ivable $700 compensate for the damage. 15 Allied receives paynent from Macy for the amount oved on the May 5 purchase payment is net of returns, allowances, and any cash discount. 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. Income Statement Components May 3 Increase/Decrease May 5 Increase/Decrease May 7 Increase/Decrease Amount Amount May & Increase/Decrease Amount Amoi Sales Sales discounts Sales returns and allowances Net soos Cost of goods sold Gross pront Check my wo www.www.www.www UCIS A LA gives a price reduction allowance) and credits Macy's accounts receivable for $700 to compensate for the damage. 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. se the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the ccounts and amounts (including + or -) for each transaction Income Statement Components May 3 Increase/Decrease Amount May Increase/Decrease Amount May 7 Increase/Decrease May & Increase/Decrease Amount Bales Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit in ansaction by indicating its effects on the income statement-specifically, identify the for each transaction, May 3 aseDecrease May 8 May 5 Increase/Decrease Amount May 7 Increase/Decrease May 15 Amount Amount Increase/Decrease Amount Increase/Decrease Amount