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The following information applies to the questions displayed below.) Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied

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The following information applies to the questions displayed below.) Allied 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 unite at a price of 59 cash per unit (for a total cost of $18,000). 5 Mlied sold 1,000 of the units in inventory for $13 per unit (invoice total: $13,000) to Macy Co. under credit terns 2/10, n/60. The goods cost Allied $9,000. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,300). Allied restores the units, which cost $900, to its inventory 8 Xacy discovers that 100 units are suffed but are still of use and, therefore, keeps the units. Allied gives a price reduction allowance) and credito Hacy's accounts receivable for $500 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. Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual Inventory system and the gross method. View transaction list Journal entry worksheet Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,300). Note: Enter debits before credits. Date General Journal Debit Credit May 07 Record entry Clear entry View general journal Journal entry worksheet 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 $500 to compensate for the damage. Note: Enter debits before credits. Date General Journal Debit Credit May 08 Record entry Clear entry View general Journal Journal entry worksheet

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