Required information Allied Merchandisers was organized on May 1. Macy Co. 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 1,00e units at a price of $8 cash per unit (for a total cost of $8,000) 5 Allied sold s00 of the units in inventory for $12 per unit (invoice total: $6,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $4,00e. 7 Macy returns 5e units because they did not fit the customer's needs (invoice amount: $600). Allied restores the units, which cost $400, to its inventory. 8 Macy discovers that 5e units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $20e toward the original invoice anount to compensate for the damage. 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 method. (Allied estimates returns using an adjusting entry at each year-end.) View transaction list Journal entry worksheet 6 7 53:30 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $8 cash per unit (for a total cost of $8,000). Note: Enter debits before credits. Date General Journal Debit Credit May 03 Clear entry Record entry View general journal View transaction list Journal entry worksheet View transaction list Journal entry worksheet of 2 > 2 3 5 2-52-51 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $600). Note: Enter debits before credits. Date General Journal Credit Debit May 07 Record entry Clear entry View peneral journal Prey of 10 Next > Journal entry worksheet