of 2 00 ences [The following information applies to the questions displayed below.) 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 1,000 units at a price of $11 cash per unit (for a total cost of $11,000). Hay 5 Allied sold 500 of the units in inventory for $15 per unit (invoice totals $7,500) to Macy Company under credit terns 2/10, n/60. The goods cost Allied $5,500. May 7 May Macy returns 50 units because they did not fit the customer's needs (invoice amounts $750). Allied. restores the units, which cost $550, to its inventory. 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 Nacy's accounts receivable for $350 to compensate for the damage. May 15 Allied receives payment from Hacy for the amount owed on the May 5 purchase; payment is set 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 Sales Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit Check my work May 3 May 5 May 71 May Increase/Decrease Amount Increase/Decrease Amount Increase/Decrease Amount Increase/Decrease Am