Required information Use the following information for the Exercises below. The following information applies to the questions displayed below Alled 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 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. 7 Macy returns 8 Macy discovers that 200 unita are scufted but are stili ot use and, therefore, keeps the units. Allied price of $10 cash per unit (for a total cost of $20,000) under credit terms 2/10, n/60. The Jgoods coat Allied $15,000, restores the units, which cost $1,250, to its inventory sends Mac 125 units because they did not fit the customer's needs (invoice amount: $1,750). Allied y a credit memorandum for $300 toward the original invoice amount to compensate for the damage. 15 Allied receives payment trom Macy tor the amount oved on the May 5 purchase; payment is net ot returns, allowances, and any cash discount. Exercise 4-5 Recording purchases, purchases returns, and purchases allowances LO P1