Required information Use the following information for the Exercises 6-8 below. (Algo) (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 price of $10 cash per unit 5 Allied sold 1,000 of the units in inventory for $14 per unit (invoice total: $14,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $10,000. only purchase of inventory for the period on May 3 for 2,000 units at a (for a total cost of $20,000). 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. 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. 15 Allied receives payment from Macy for the amount oved on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Exercise 4-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journal entries for Macy Co. 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.) < Prev of 11 Next > Re- Required information "No journal entry required" in the first account field.) Answer is not complete. No 1 Date May 03 General Journal Debit Credit Cash 20,000 Merchandise inventory 20,000 2 May 05 Sales Accounts receivable 3 3 May 07 Accounts receivable Sales returns and allowances 4 May 08 5 May 15 Accounts receivable Sales returns and allowances Sales returns and allowances Cash 14,000 x 14,000- 1,400 1,400 * 6000 600