Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.

Required information [The following information applies to the questions displayed below.] Alited Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products May 3 Allied nade Its first and only purchase of inventory for the period on May 3 for 2,00e units at a price of $10 cash per unit (for a total cost of $20,000 ). May 5 Aliied sold 1, 500 of the units in inventory for $14 per unit (invoice total: $21,060 ) to Macy Company under credit terns 2/10,n/6e. The goods cost Allied $15, eee. May 7 Macy returns 125 units because they did not fit the customen's needs (invoice anount $1,750 ). Aliled restores the units, which cost $1,250, to its inventory. May 5 Macy discovers that 200 units are scuffed but are st111 of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for \$300 to conpensate for the damage. May 15 Allied recelves paynent from Hacy for the amount owed on the May 5 purchase; payeent ds net of roturns, allowances, and any cash discount. Prepare journal entries to record the following transactions for Alled assuming it uses a perpetual inventory system and the gross method