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 $10 cash per unit (for a total cost of $20,000). 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15,000. 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory. 8 Macy discovers that 200 units are scuffed but are still of use and therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage. 15 Allied receives payment from Macy for the amount owed on the Way 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, and purchases these units for resale (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Date General Journal Debit Credit 1 May 03 Merchandise inventory Cash X 20,000 20,000 ed 2 May 05 Accounts receivable Cost of goods sold Merchandise inventory S 14,000 10,000 10,000 3 May 07 X Sales returns and allowances Merchandise inventory Cost of goods sold 1,400 1.000 >> 1.000 4 May 08 Sales returns and allowances Accounts receivable 600 3 600 5 May 15 Cash Merchandise inventory Accounts recevable X 11.7603 240 x x 12.000 38