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 , e0e units at a price of $7 cash per unit (for a total cost of $14,6el ). May 5 Allied sold 1,600 of the units in inventory for $11 per unit (invoice total: $11,600 ) to Hacy Company under credit terms 2/18,n/60. The goods cost Allied $7, pee. May 7 Macy returns 100 units because they did not fit the customer's needs (involce anount; \$1, 18e). Allied restores the units, which cost $7e0, to its inventory. May 8 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. A1lied gives a price reduction (allowance) and credits Macy's accounta receivable for $300 to conpensate for the danage. May: 15 Allied receives payment from Macy for the anount owed on the May 5 purchase; payment is net of returns, allowances, and any kash discount. Prepare fournal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. Journal entry worksheet 12 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,100 ). Note: Enter debits before credits