Prepare the journal entries to record the following transactions for Allied

Required information [The following information applies to the questions displayed below.] Alled 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 2,000 units at a price of 57 casb per unit (for a total cost of $14,600 ). May 5 Allied sold 1,000 of the units in inventory for $11 per unit (invoice total: \$11, 990 ) to Macy Company under credit terins 2/10,n/60. The goods cost Allied $7,000. May 7 Macy returns-100 units because they did not fit the customer's neds (invoice anount: \$1, 190). A11ied restores the units, which cost $700, to its inventory. May 8 Macy discavers that 100 units are scuffed but are sti11 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 danage. May 15 Allied receives payment from Macy for the amount oued on the May 5 purchase; payment is net of returns, 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. Journal entry worksheet 7 Macy discovers that 100 units are scuffed but are still of use and, therefore. keeps the units. Alled gives a price reduction (allowance) and credits Macy's accounts recelvable for $300 to compensate for the damage. Note: Enter debits before credirs