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.)

Use the following information for the Exercises 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 $8 5 Allied sold 1,000 of the units in inventory for $12 per unit (invoice total: $12,000) to Macy Co. under credit 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Allied restores 8 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied sends 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, cash per unit (for a total cost of $16,000) terms 2/10, n/60. The goods cost Allied $8,000 the units, which cost $800, to its inventory. Macy a credit memorandum for $400 toward the original invoice amount to compensate for the damage. allowances, and any cash discount Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $8 cash per unit (for a total cost of $16,000) 2 Allied sold 1,000 of the units in inventory for $12 per unit (invoice total: $12,000) to Macy Co. under credit terms 2/10, n/60. The goods cost $8,000 to Allied 3 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Allied restores the units, which cost $800, to its inventory 4 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $400 toward the original invoice amount to compensate for the damage 5 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns allowances, and any cash discount