Required information Use the following information for the Exercises below. (The following Information applies to the questions displayed below) TYPED Allied Merchandisers was organized on May 1 Macy Company is a major customer (buyer) of Allied (seller) products Expert Answer non General Jour No Date 1 May 3 Allied made its first and only purchase of inventory for the period on May 5 for 2,000 units at a price of $11 cash per unit (for a total cost of $22,000). May 5 Allied sold 1,000 of the units in inventory for $15 per unit (Invoice total: $15,000) to Nacy Company under credit terms 2/10, 1/60. The goods cost Allied $11,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,500). Allied restores the units, which cost $1,100, to its inventory. May 8 Macy discovers that 100 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 $700 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. 2 3 Ms totement LOP2 ce -- A 1.0 th Hy het which May te ca May 11 w - Exercise 4-7 (Alge) Effects of sales transactions on income statement LOP2 Use the above into the selected accounts and amounts outro Sales Sales Salesume and M OL Cost of good wie 2 > TO Search