[The following information applies to the questions displayed below) Aled Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products, May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,600). 5 Allied sold 1,000 of the units in inventory for $14 per unit (invoice total: $14,000 to Macy Co. under credit terms 2/10, 1/60. The goods cost Allied $10,000. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,400). Allied restores the units, which cost $1,000, to its inventory. 8 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 receivable for $600 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 4-5 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; 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.) Answer is not complete. No Date General Journal Debit Credit 1 May 03 No journal entry required S 2 Mayos 14,000 Merchandise inventory Accounts payable 14,000 May 07 1,400 > Accounts payable Merchandise inventory 1.400 4 May 08 600 > Accounts payable Merchandise inventory O 600 5 May 15 Cash Sales discounts 11,760 240 Accounts receivable 12.000 x