Required information Use the following information for the Exercises below. [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 selle products May 3 Allied made its first and only purchase of inventory for the period on May for 2.000 units at price of sie cash per unit (for a total cost of $20.000). 5 Allied sold 1,000 of the units in Inventory for $14 per unit (invoice total: $14,000 to Macy Counder credit terms 2/10, 1/60. The goods cost Allied $10,000. 7 Macy returns 100 units because they did not fit the custo d s ( voice amount: $1.402 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 Allied sends Macy a credit memorandum for $600 toward the original Invoice amount to compensate for the damage 15 Allied receives payment from Macy for the mount pued on the May purchased Pat net of returns allowances, and any cash discount. Exercise 4.4 Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transations for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates retums using an adjusting entry at each od