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 1,880 5 Allied sold 500 of the units in inventory for $15 per unit (invoice total: $7,58e) to Macy 7 Macy returns 58 units because they did not fit the customer's needs (invoice amount: 8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is units at a price of $11 cash per unit (for a total cost of $11,98) Co. under credit terms 2/10, n/60 The goods cost Allied $5,500 $758). Allied restores the units, which cost $550, to its inventory. units. Allied sends Macy a credit memorandum for $358 toward the original invoice anount to compensate for the damage. 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 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