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 Aled (seller) products. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $9 cash per unit (for a total cost of $27,000). May 5 Allied sold 1,500 of the units in inventory for $13 per unit invoice total: $19,500) to Macy Company under credit terms 2/10, 1/60. The goods cost Allied $13,500. 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 paynent from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Exercise 5-8 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journal entries for Macy Company to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system; it purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. Debit No Credit General Journal Date 27,000 1 May 03 Merchandise inventory Cash 27,000 2 May 05 19,500 19,500 Accounts receivable Sales Cost of goods sold Merchandise inventory 13,500 13,500 19,500 3 May 07 Sales returns and allowances Accounts receivable 19,500 X 750 4 May 08 Purchases returns and allowances Accounts receivable > 750 16,800 5 May 15 Cash Accounts receivable 16,800