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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)

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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 3 , eag units at a price of $11 cash per unit (for a total cost of $33,000 ). May 5 Allied sold 1,500 of the units in inventory for $15 per unit (invoice totat: $22,589 ) to Macy Conpany under credit terms 2/10,n/60. The goods cost Allied $16,500. May 7 Macy returns 150 units because they did not fit the customer's needs (involce anount: $2,250 ). Allied restores the units, which cost $1,650, to its inventory. May 8 Macy discovers that 150 units are scuffed but are stili of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $1,050 to compensate for the damage. May 15 Allied receives payment from Macy for the anount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the accounts and amounts (including + or -) for each transaction. \begin{tabular}{l} Income Statement Components \\ Sales \\ Seles discounts \\ \hline Sales returns and allowances \\ Net sales \\ \hline Cost of coods sold \\ \hline Gross proft \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{2}{|l|}{ May 7} & \multicolumn{2}{|c|}{ May 8} & \multicolumn{2}{|c|}{ May 15} \\ \hline se/Decrease & Amount & Increase/Decrease & Amount & Increase/Decrease & Amount \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular}

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