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 2,000 units at a price of $10 cash per unit (for a total cont of $20,000 ). May 5 Allied sold 1,000 of the unita in inventory for $14 per unit (invoice total: $14,000 ) to Macy Coepany under credit termi 2/10,n/60. The good May 7 Macy return 100 units because they did not fit the customer'n needs (invoice amount, $1, 400 ). Allied restores the units, which cost $1,000, to ita inventory. May 8 Macy discovers that 100 units are scuffed but are atili of use and, therefore, keeps the units. Aliled gives a price reduction (allowance) and eredita Macy' n accounta receivable for $600 to conpensate tor the danage. May 15 Alilied receives payment fron Macy for the amount owed on the May 5 purchane; 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 (including + or - ) for each transaction. 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 (including + or - ) for each transaction