Required information (The following information applies to the questions displayed below.) Allied Merchandisers was organized on May 1. Macy Co. 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 $10 cash per unit (for a total cost of $20, eee). 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,800) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15,000 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. 8 Macy discovers that 200 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 $300 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. stesuffed but are still of uitable for $300 to compense net of returns, Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. 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). Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. 3 Record the cost of goods sold. Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. Note : = journal entry has been entered 6 Macy discovers that 200 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 $300 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. Required information [The following information applies to the questions displayed below) Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products 3 Allied made its first and only purchase of inventory for the period on May ) 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 Hacy Co. under credit terms 2/10, 1/60. The goods cost Allied $15,000. 7 Macy returns 125 units because they did not fit the custoner's needs (invoice amount: $1,750). Allied restores the units, which cost $1,25e to its inventory. 8 Macy discovers that 200 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 $300 to compensate for the damage 15 Allied receives payment from Macy for the amount Owed on the May Spurchase payment is net of returns, allowances, and any cash discount Prepare 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, and purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)