May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,898 units at a price of $9 cash per unit (for a total cost of $18,000) 5 Allied sold 1,000 of the units in inventory for $13 per unit (invoice total: $13,299) to Macy Co. under credit terms 2/10, n/6e. The goods cost Allied $9,889. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,300). Allied restores the units, which cost $900, to its inventory. 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 $500 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. repare 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; it purchases these units for resale. (If no entry is required for e transaction/event, sele No Journal entry required" in the first account field.) View transaction list Journal entry worksheet