Sifient

$(1)$

Requhred informetion

Whe wowng whormation applies to the questions displayed below.$)$

Amed Menchandisers was organized on May $1.$ Macy Company is a major customer $($buyer$)$ of Allied $($seller$)$ products.

NAsy $7$ Allied made its first and only purchase of inventory for the period on May $3$ for $2,$ eeg units at a price of $$9$

Mey $5$ cash per unit $($for a total cost of $$18,000).$

Mey $5$ Allied sold $1,000$ of the units in inventory for $$13$ per unit $($invoice total: $$13,0)$

May $8$ Macy discovers that $100$ units are scuffed but are still of use and, for $$500$ to compensate for the damage.

May $15$ Allied receives payment from Macy for the amount owed on the May $5$ purchase; payment is net of returns,

allowances, and any cash discount.

Use the above informations, analyze each transaction by indicating its effects on the income statement$-$specifically, identify the accounts and amounts $($including $+$ or $-)$ for each transaction.

$\backslash$table$[[$Income Statement Components,May $3,$May $5,$May $7,$May $8,$May $15],[$Increase$/$Decrease$,$Amount,Increase$/$Decrease$,$Amount,Increase$/$Decrease$,$Amount,IncreaselDecrease,Amount,IncreaselDecrease,Amount$],[$Sales$,,,,,,,,,,],[$Sales discounts,,,$1,,,,[,,,],[$Sales returns and allowances,,,,,,,,,,$],[$Net sales,,,,W$,,,,,,],[$Cost of goods sold,,,,,,,,,,$],[$Gross profit,,,,,,,,,,$]]$