Required information [The following information applies to the questions displayed below) 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 2,000 units at a price of $8 cash per unit (for a total cost of $16,006). 5 Allied sold 1,000 of the units in inventory for $12 per unit (invoice total: $12,000 to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $8,000. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Allied restores the units, which cost $800, to "its inventory. 8 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $400 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 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; it purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) & Answer is not complete. Debit Credit No Date General Journal 1 X May 03 16,000 Merchandise inventory Cash 16,000 2 May 05 12,000 Merchandise inventory Accounts payable 12,000 3 May 07 1,200 Accounts payable Merchandise inventory 1,200 4 May 08 400 Accounts payable Merchandise inventory 400 5 May 15 10,400 Accounts payable Merchandise inventory Cash 208 10,192