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 7 1111ed made its first and only purchase of inventory for the period on May 3 for 2,000 unito at a price of $11 cash per unit (for a total cost of $22,000). S Allied sold 1,000 of the units in inventory for $15 per unit (invoice total: $15,000) to Macy Co. under credit terms 2/10, n/60. The goods coat Allied $11,000. 7 Macy returne 100 units because they did not fit the customer's needs (invoice amount: $1,500). Allied restores the units, which coat $1,100, to its inventory Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied give price reduction allowance) and credita Macy's accounts receivable for $700 to compensate for the damage. 15 Allied receives payment from Macy for the amount owed on the May 5 purchase) payment is net of returna, 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 Macy returns 100 units because they did not fit the customer's needs (Invoice amount: $1,500). Note: Enter debits before credits. General Journal Debit Credit Date May 07 Record entry Clear entry View general Journal Journal entry worksheet 1 2 3 5 5 6 > Allied restores the units, which cost $1,100, to its inventory. Note: Enter debits before credits. Date General Journal Debit Credit May 07 Record entry Clear entry View general Journal Journal entry worksheet