[The following Information applies to the questions displayed below.) Alled Merchandisers was organized on May 1. Macy Company 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 2,800 units at a price of $8 cash per unit (for a total cost of $16,800). May 5 Allied sold 1,000 of the units in inventory for $12 per unit (anvoice total: $12,000) to Macy Company under credit terns 2/10, 1/60. The goods cost Allied $8,000. May 7 Macy returns 100 units because they did not fit the customer's needs invoice amount: $1,200). Allied restores the units, which cost 5800, to its inventory. May 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 $400 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase: paynent 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 May 3 Increase/Decrease May 5 Increase/Decrease May 7 Increase/Decrease Amount Amount Amount Increa Income Statement Components Sales Salon discounts Sales returns and allowances Not sales Cost of goods sold Gross profit mpany is a major customer (buyer) of Allied (seller) products inventory for the period on May 3 for 2,000 units at a tof $16.000). y for $12 per unit (invoice total: $12,000 to Macy goods cost Allied $8,000. t fit the customer's needs (invoice amount: 51,200). to its inventory. but are still of use and, therefore, keeps the units. and credits Macy's accounts receivable for $400 to amount owed on the May 5 purchase: payment is net of Eating its effects on the income statement--specifically, Identify the May 5 Increase/Decrease May 7 Increase/Decrease unt Amount May 0 Increase/Decrease May 15 Increaso/Decrease Amount Amount Amount