May $3$ Allied made its first and only purchase of inventory for the period on May $3$ for $1,000$ units at a price of $$11$ cash per unit $($for a total cost of $$11,000).$

May $5$ Allied sold $500$ of the units in inventory for $$15$ per unit $($invoice total: $$7,500)$ to Macy Company under credit terms $2/10,$ n$/60.$ The goods cost Allied $$5,500.$

May $7$ Macy returns $50$ units because they did not fit the customer's needs $($invoice amount: $$750).$ Allied restores the units, which cost $$550,$ to its inventory.

May $8$ Macy discovers that $50$ 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 $$350$ 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.

Exercise $4-7($Algo$)$ Effects of sales transactions on income statement LO P$2$

Jse 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.