Required information Use the following information for the Exercises below. [The following information appoies to the questions displayed beiow.] Alled Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Alied (seiler) products My'? Alised mode ita firat and ondy parekse of 1nventory tar the period on May.3 for 2, 9po wits at a priee of $10 cash per unit (for a total eoat of 420,000 ). to Macy Company under eredit terns 2/10, R/60. The goods eost Alied $16,000. May 7 Mey cotorns 100 units becapse they did not fit the customer's needs (inwoice anount) 51,400). Al1ied reatores the unite; vidieh cost $1,000, to isa inventory. May I Macy discover that 105 uaita are seufted but are stili of uae and, theretore, keepa the uniti. Allied aqivel a price reduction (allowance) and erediti Macy'a accounts recelvable for 1600 to ccepetbate for the darage. May is Alited receives paynent fron Macy for the anount eved on the lay 5 purehaael gayreat is net of reterna, allowances, and any eash aiacount. Exercise 4-7 (Algo) Effects of sales transactions on income statement LO P2 Use the agove informations, analyze each transaction by indicating its effects on the income statement-specifically. Wentify the accounts and amounts (including + ot -) for each transaction