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 Alled (seller) products. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 unita at a 5 Allied sold 1,500 of the units in inventory tor $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 anount: $1,750). Allied 8 Macy discovers that 200 units are scuffed but are atill of use and, therefore, keeps the unita. Allied price of $10 cash per unit (for a total cost of $20,000) under credit terms 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 danage. 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 4-5 Recording purchases, purchases returns, and purchases allowances LO P1 Prepare the appropriate journal entries for Macy Co. to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system, and purchases these units for resale. (If no entry is required for a transaction/event, select No journal entry required" in the first account field.)