Lewy ouppes to the questions apoyeu veruj Allied Merchandisers was organized on May 1. Macy Company 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 $11 cash per unit (for a total cost of $22,000). May 5 Allied sold 1,000 of the units in inventory for $15 per unit (invoice total: $15,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $11,000. May 7 Macy 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. May 8 Macy discovers that 100 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 $700 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. 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. Answer is not complete. May 3 May 5 May 7 Income Statement Components Increase/Decrease Amount Increase/Decrease Amount Increase/Decrease Amount Increa Sales (+) increase Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit (+) increase (+) increase (+) increase (+) increase (-) decrease (-) decrease (-) decrease: 3000 (+) incm (-) dec (-) dec Answer is not complete. May 7 Increase/Decrease May 8 Amount Increase/Decrease Amount (+) increase (+) increase (-) decrease (-) decrease (-) decrease decrease (-) decrease May 15 Increase/Decrease (+) increase (-) decrease Amount