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 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). May 5 Allied sold 500 of the units in inventory for $14 per unit (Invoice total: $7,000) to Macy Company under credit terns 2/10, n/60. The goods cost Allied $5,000. May 7 Macy returns 50 units because they did not fit the customer's neede (Invoice anount: $700). Allied restores the units, which cost 3500, to its inventory. May 8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied gives price reduction allowance) and credito Macy's accounts receivable for $300 to compensate for the damage May 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 journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method View transaction that Journal entry worksheet 1 5 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). View transaction list Journal entry worksheet 1 2 3 5 6 7 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). Note: Enter debits before credits General Journal Date May 03 Debit Credit Record entry Clear entry View general Journal Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual in method View transaction list Journal entry worksheet