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 $12 cash per unit (for a total cost of $24,000). 5 Allied sold 1,000 of the units in inventory for $16 per unit (invoice total: $16,000 to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $12,000. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,600). Allied restores the units, which cost $1,200, to its inventory. 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 $800 to compensate for the damage. 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. Answer is not complete. No General Journal Credit Date May 03 Debit 24,000 Me Merchandise inventory Cash 24,000 May 05 16,000 Accounts receivable Sales 16,000 May 05 12,000 Cost of goods sold Merchandise inventory 12,000 May 07 1,600 Sales returns and allowances Accounts receivable 1,600 May 07 1,200 Merchandise inventory Cost of goods sold 1,200 May 08 800 Sales returns and allowances Accounts receivable 800 May 15 24,000 X Cash Sales discounts Accounts receivable 240 % 23,760