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 3,eee units at a price of $9 cash per unit (for a total cost of $27,eee). May 5 Allied sold 1,5ee of the units in inventory for $13 per unit (invoice total: $19,50e) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $13,5ee. May 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $1,950). Allied restores the units, which cost $1,350, to its inventory. May 8 Macy discovers that 150 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 $750 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Exercise 5-7 (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 (Including + or -) for each transaction. Income Statement Components May 3 Increase/Decrease May 5 Increase/Decrease May 7 Increase/Decrease May 8 Increase/Decrease May 15 Increase/Decrease Amount Amount Amount Amount Amount Sales Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit