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 (seller) products May 3 Allied made its first and only purchase of inventory for the period on May 3 for 1,00e units at a price of $12 5 Allied sold 500 of the units in inventory for $16 per unit (invoice total: $8,00) to Macy Co. under credit 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $800). Allied restores the 8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy 15 Allied receives payment from Macy for the amount owed on the May 5 purchase payment is net of returns, cash per unit (for a total cost of $12,000) terms 2/10, n/60. The goods cost Allied $6,000. units, which cost $600, to its inventory. a credit memorandum for $400 toward the original invoice amount to compensate for the damage. allowances, and any cash discount Exercise 4-4 Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.)