Prepare the journal entries to record the following transactions for Allied

Required information [The following information applies to the questions displayed below.] Allied 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 2,80e unfts at a price of $7 cash per unit (for a total cost of $14,000 ). May 5 Allied sold 1,000 of the units in inventory for \$11 per unit (invoice total: \$11,0e) to Macy Canpany under credit terms 2/10,n/69. The goods cost Allied $7,600. May 7 Macy returns 180 units because they did not fit the custoner's needs (invoice amount: 31, 18e). Alied restores the units, which cost $760, to its inventory. May 8 Macy discovers that 100 units are scuffed but are sti1l 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 darage. May 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. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross miethod. Journal entry worksheet