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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 $1,000$ units at a price of $$10$ cash per unit $($for a total cost of $$10,000).$

May $5$ Allied sold $500$ of the units in inventory for $$14$ per unit $($invoice total: $$7,000)$ to Macy Company

May $7$ under credit terms $\frac{2}{10},\frac{n}{60}.$ The goods cost Allied $$5,000.$

restores the $50$ units because they did not fit the customer's needs $($invoice amount: $$700).$ Allied

May $8$ Macy disco units, which cost $$500,$ to its inventory. gives a price redul $50$ units are scuffed but are still of use and, therefore, keeps the units. Allied the damage.

May $15$ 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.

Journal entry worksheet

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$3$

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$5$

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$7$

Allied made its first and only purchase of inventory for the period on May $3$ for $1,000$ units at a price of $$10$ cash per unit $($for a total cost of $$10,000).$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$May $03,,,],[,,,],[,,,],[,,,],[,,,]]$