Required information Allied Merchandisers was organized on May 1. Macy Co is a major customer (buyer) of Allied (seller) products. May3 Allied made its first and only purchase of Inventory for the period on May 3 for 1.000 unita price of $11 cash per unit for a total cost of $11, 000). 5 Allied sold 500 of the units in inventory for $15 per unit invoice total: $7,500) to Macy Co. under credit torn 2/10, 1/60. The good cont Allied S5,500 7 Macy return 50 unite because they did not fit the customer needs invoice amount: $250). Allod rostorou the units, which cont 5550, to its inventory 8 Macy discovers that 50 units are curred but are still of use and therefore, keeps the units. Allied Honda Macy a credit monorandum for $350 toward the original invoice amount to compensate for the damage 15 allied receivee payment from Macy for the amount owed on the May 5 purchase: payment is net of return allowances, and any cash discount 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.) View Journal entry worksheet View transaction list No Date 1 May 03 General Journal Debit Credit No journal entry required 2 May 05 Merchandise inventory 7,500 Journal entry worksheet 1 2 3 5 > Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $11 cash per unit (for a total cost of $11,000). Note: Enter debits before credits. Date May 03 Debit General Journal No journal entry required Credit Journal entry worksheet 25 3 4 un Allied sold 500 of the units in inventory for $15 per unit (invoice total: $7,500) to Macy Co. under credit terms 2/10, n/60. The goods cost $5,500 to Allied. Note: Enter debits before credits Date Credit General Journal Merchandise inventory Debit 7,500 May 05 Journal entry worksheet > 1 2 3 4 5 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $750). Allied restores the units, which cost $550, to its inventory. Note: Enter debits before credits. Date Debit Credit General Journal Accounts payable May 07 750 Journal entry worksheet 5 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $350 toward the original invoice amount to compensate for the damage. Note: Enter debits before credits. Debit Credit Date May 08 General Journal (Accounts payable 350 Journal entry worksheet