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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) product5: May 3 Allied made it firat and only purchase of Iiventory for the period on May 3 for 2,000 units at a price of 512 cash per unit (tor a total cont of 524,000 ). May 5 Alised nold 1,000 of the inita in inveatory for $16 per init (involee totali $16,000) to Macy Conpany under eredit terma 2/10,n/60, the goedn cont Alied $12,000, Kay 7 kacy returns 100 units because they did not fit the customer's neds (invoice anount) $1,600 ). N111ed restores the units, Whieh cost $1,200, to its inventory. May i Kacy discovers that 100 usita are neuffed but ore atili of use and, therefore, Keeph the unith. AIIied gives a price reduction (allovance) and eredits racy's sccounts receivabie for seco to nompenate for the dansge. Kay is Airied receiven paymon fron Macy for the anount owed on the May 5 purebase; paywent in ast of returns, allokances, and any cash diecount. Prepare the appropriate journal entries for Macy Company to record each of the May transactions. Macy is a retaller that uses the gross method and a perpetual inventory system; it purchases these units for resale. May 5 Allied sold 1,000 of the units in inventory for $16 per antt (tavolce totalt $16,000 ) under oredit terma 2/10,7/60, The gooda eost Nilied $12,000. May. 7 Macy returns 100 units because they did not fit the customer's needs (fnvoiee amount; \$l, 600 . Allied featores the units, which eent $1,200, to its inventory. May 9 Macy discovers that 100 unita are scuffed bat are still of use and, therefore, keeps the units. Allied given a price reduction (allowance) and eredita Nacy' d sccounts receivable for $800 to conpensate for the damage. May 15 All hed recoives paynent from Macy fer the amoant oved on the May 5 purchase; payment 10 net of returne, allovances, and any cast disceunt. Prepare the appropriate journal entries for Macy Company 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field

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