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 nade 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 1,500 of the units in invertory for $14 per unit invoice total: $21,000) to Maey Company under credit terms 2/10, n/60. The goods coat Allied $15,000. May 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. May Macy discovers that 200 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 $300 to compensate for the damage. May 15 Allied receives payment fron Macy for the amount oved on the May 5 purchase payment is not of returns, allowances, and any cash discount. Use the above informations, analyze each transaction by indicating its effects on the income statement--specifically, identify the accounts and amounts (including + or.) for each transaction, Income Statement Components May Mays Increase/Decrease May 7 Increase/Decrease Amount Amount Increase Decrease Amount Increa Sales Sales discounts Sales retums and allowances Not sales Cost of goods sold Gross profit Alied Merchandisers was organized on May 1 Macy Company is a major customer buyer of Allied sefer products Hay Allied de to fit and only purchase of inventory for the pray for 1,000 prie of 80 e per it (for a total of 110.000). Hay Alld 1.500 of the site in it for it (avoir totalt 131,000 to My Company under credit te 2/10, 1/6. The good cout All 115,000 May May tuma 135 nice they did not fit the custom da vole o 11,758). Alle waters the unit which cout 1.15. te teatery Hay Hay discovers that 100 wita wuffed but are now and therefore, the site. All give price reduction allowance od wedia Mary' conte recevable for $100 to compensate for the dange wy 15 All receives payment from May for the most ved on the way papayant is set of urna, allowed, and any cash discount Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, Identity the accounts and amounts including or for each transaction Campona Meys Amount Am May Incre At Sadece Sistem and was Net Cost of goods sold Go MacBook Air it inter totalt 621,000) to My Company .000. oner hende invoice mounts 11,750). All and therefore, keep the wait. Allied Boots receivable for 5300 Compensate for the Hay 5 purch payment is set of on the income statement-specifically, Identify the May May Increase Amat May Increase Amount By 18 then Deco Amount Amount