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 2,000 units at a price of $10 cash per unit (for a total cost of $20,000). May 5 Allied sold 1,000 of the units in inventory for $14 per unit invoice total: $14,000) to Macy Company under credit terms 2/10, 1/60. The goods cost Allied $10,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,400). Allied restores the units, which cost $1,800, to its inventory. May 8 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $600 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 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 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). Note: Enter debits before credits Debit Credit Date General Journal Prev 1 2 of 2 Next > Journal entry worksheet w Required information The following information applies to the questions displayed below) Aled Merchandisers was organized on May 1 Macy Company is a major customer buyer) of Allied (seller products May 3 Allied nade its first and only purchase of inventory for the period on May for 2,000 units at a price of $10 cash per unit for a total cost of $20,000). May 5 Allied sold 1,000 of the units in inventory for $14 per unit invoice totalt 514,000) to Macy Company under credit terns 2/10, 160. The goods cost Allied $10,000. May 7 Macy returns 100 units because they did not fit the customer's needs invoice amount $1,400). Allied restores the units, which cost $1,000, to its inventory. May 8 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction allowance) and credits Macy's accounts receivable for $600 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. Jse the above Informations, analyze each transaction by indicating its effects on the income statement-specifically, Identity the sccounts and amounts including or.) for each transaction May Income Statement Components May Increase Decrane Mays Increase Oecone May Inter Amount Amount Ich Amount Ainou Sales Salon discounts Serums and allowances Notas Cost of goods sold Group r (buyer) of Allied (seller) products. Od on May 3 for 2,000 units at a oice total: $14,000) to Macy Company eds (invoice amount: $1,400). Allied d, therefore, keeps the units. ounts receivable for $600 to 5 purchase; payment is net of come statement-specifically, identify the May 15 May 7 Increase/Decrease May 8 Increase/Decrease Amount Amount Amount Increase/Decrease Amount