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 $8 cash per unit (for a total cost of $16,000). May 5 Allied sold 1,000 of the units in inventory for $12 per unit (invoice total: $12,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $8,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Allied restores the units, which cost $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 $400 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 list Journal entry worksheet 1 2 3 4 5 6 7 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $8 cash per unit (for a total cost of $16,000). Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method View transaction list Journal entry worksheet Allied sold 1,000 of the units in inventory for $12 per unit (invoice total: $12,000) to Macy Co. under credit terms 2/10, n/60. Note: Enter debits before credits. Date General Journal Debit Credit May 05 Record entry Clear entry View general journal Journal entry worksheet 1 2 4 5 6 7 Record the cost of goods sold. Note: Enter debits before credits. Date General Journal Debit Credit May 05 Record entry Clear entry View general Journal Journal entry worksheet Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Note: Enter debits before credits. Date General Journal Debit Credit May 07 Record entry Clear entry View general Journal Journal entry worksheet 1 2 3 4 5 6 7 ALARARA > Allied restores the units, which cost $800, to its inventory. Note: Enter debits before credits. Date General Journal Debit Credit May 07 Record entry Clear entry View general journal Journal entry worksheet 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 $400 to compensate for the damage. Note: Enter debits before credits. Date General Journal Debit Credit May 08 Record entry Clear entry View general Journal Journal entry worksheet 1 2 3 4 5 6 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Note: Enter debits before credits. General Journal Debit Credit Date May 15 Record entry Clear entry View general journal