returns, allowances, and any cash discount. Prepare journal entries to record the following transactions for Allied assuming it method. 1 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $12 cash per unit (for a total cost of $24,000 ). 2 Allied sold 1,000 of the units in inventory for $16 per unit (invoice total: $16,000 ) to Macy Company under credit terms 2/10,n/60. 3 Record the cost of goods sold. 4 Macy returns 100 units because they did not fit the customer's needs (involce amount: $1,600 ). 5 Alled restores the units, which cost $1,200, to its inventory. Note : a journal entry has been entered 5 Allied restores the units, which cost $1,200, to its inventory, 6 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts recelvable for $800 to compensate for the damage. 7 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Required information [The following information applies to the questions displayed betow] Allied Merchandisers was organized on May 1. Macy Compery is a major customer (buyen) of Amed (selen) products. Mhy 3 Milied nade ite Llrut and enly purehane of Inventory for the period on May 3 for 2,050 axile at a price of $12 canh per unit (for a tatal oont of $24,650}. May 5 MLlied mold 1, 000 of the unita in inventory for 516 per whit (invaice totali 516,050) to macy Coepany ander eredit terma 2/10, n/60. The poode cost Al1ied $12,000. restores the units, which coot 31,200 , to ita inventory. May s Macy discovers that 100 unlth are scutted but are atil1 of use and, therefore, keepe the anits. MBHied given a price reduction (allowance) and eredits macy's accounts receivable for 5905 to conpensats for the damse. Kay is allied receiven payment from Macy for the anoant oved on the May 5 parchases paysent is net of returne, allownces, and any caah diacount. Prepare the appropriate journal entries for Macy Company to record each of the May transactions. Macy is a retaler that uses the gross method and a perpetual irventory system, it purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Alled made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $12 cash per unit (for a total cost of $24,000 ). mote: Enter debita before cresta