Only need to do the bottom step. (Refer to exercise 4-4 and prepare journal entries....)

products. Prepare journal entries to record the following transactions for Allied a petual inv isers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) ssuming it uses a per- entory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) 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 $10 cash per unit (for a total cost of $20,000). 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). 8 under credit terms 2/10, n/60. The goods cost Allied $15,000. Allied restores the units, which cost S1,250, to its inventory. Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. 15 Reirto Exerie 44 and prepare pournal entrisfor Macy Co to record esch of the May ransetions Macy is a retailer that uses the gross method and a perpetual inventory system, and purchases these units for resale