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 Company 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 1,000 units at a price of $7 cash per unit (for a total cost of $7,000). May 5 Allied sold 500 of the units in inventory for $11 per unit (invoice total: $5,500) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $3,500. Hay 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $550). Allied restores the units, which cost $350, to its inventory. May 8 Macy discovers that 50 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 $150 to compensate for the damage. May 15 Allied receives payment from Hacy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Exercise 4-7 (Algo) Effects of sales transactions on income statement LO P2 Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the accounts and amounts pncluding or for each transaction come Statement Compet Sales s Sales retums and allowance Cast of goods sold Cross pro May 3 May 5 May May 15 Ammunt Amoud Dese Aut Base Ovotes A 5.500 3500 se 2.000 decrease Ant