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 2,00e units at a price of 57 cash per unit (for a total cost of $14,60e ). May 5 Allied sold 1,600 of the units in inventory for $11 per unit (invoice totali $11,600 ) to Macy Company under credit terms 2/18,n/6e. The Boods cost Allied $7, e0e. May 7 Macy returns 100 units because they did not fit the customer's needs (involce anount; \$1,10e). A11ied restores the units, which cost $700, to its inventory. May o Macy discovers that 100 units are scuffed but are sti11 of use and, therefore, keeps the units, A1lied 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 atount owed on the May 5 purchase; paybent 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 567 Allied sold 1,000 of the units in inventory for $11 per unit (invoice total: $11,000) to Macy Company under credit terms 2/10,n/60. Note: Enter debits before credits