Required information

Use the following information for the Exercises 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 3,000 units at a price of $12 cash per unit (for a total cost of $36,000).
May 5	Allied sold 1,500 of the units in inventory for $16 per unit (invoice total: $24,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $18,000.
May 7	Macy returns 150 units because they did not fit the customers needs (invoice amount: $2,400). Allied restores the units, which cost $1,800, 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 $1,200 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 4-6 (Algo) Recording sales, sales returns, and sales allowances LO P2

Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method.