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 Co. is a major customer (buyer) of Allied (seller) products May 3 A11ied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount $1,750). Allied 8 Macy diacovers that 200 units are acuffed but are still of use and, therefore, keeps the units. Allied price of $10 cash per unit (for a total cost of $20,000) under credit terma 2/10, n/60. The goods cost Allied $15,000. restores the units, which cost $1,250, to its inventory. sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage. 15 Allied receives paynent from Macy for the amount owed on the May 5 purohase, payment is net of returns, allowances, and any cash discount Exercise 4-5 Recording purchases, purchases returns, and purchases allowances LO P1