Required Informetlon Use the following information for the Exercises below Alled Merchandisers was organized on May 1. Macy Co. Is a major customer (buyer) of Alliled (seller) products. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 5 Allied sold 58e of the units in inventory for $14 per unit (invoice total: 7 Macy returns 58 units because they did not fit the customer' s needs (invoice 8 Macy discovers that 5e units are scuffed but are still of use and, therefore, 1,800 units at a price of $1e cash per unit (for a total cost of $1e,88) $7,880) to Macy Co. under credit terms 2/18, n/68. The goods cost Allied $5,88e amount: $708). Allied restores the units, which cost $58e, to its inventory keeps the units. Allied sends acy a credit memorandum for $380 toward the original invoice amount to compensate for the damage 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 4-4 Recording sales, sales returns, and sales allowances LO P2 Prepare Journal entries to record the following transactions for Allled assuming It uses a perpetual Invent system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) View transaction list 1 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000) fore ard the 2 Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60 3 Record the cost of goods sold Credit 4 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $700) 5 Allied restores the units, which cost $500, to its inventory. Note : journal entry has been entered