ulred Information e following information applies to the questions displayed below.) ed Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) Slucts. 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,eee units at a price of $12 cash per unit (for a total cost of $24, eee). 5 Allied sold 1, eve of the units in inventory for $16 per unit (invoice total: $16, eee) to Macy Co. under credit terms 2/10, n/6e. The goods cost Allied $12, eee. 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,680). Allied restores the units, which cost $1,200, 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 $800 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. ournal entries to record the following transactions for Allied assuming It uses a perpetual Inventory syste thod. & ansaction list View journal entry worksheet View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 May 03 Merchandise inventory 24,000 Cash 24.000 2 May 05 Accounts receivable 16.000 Sales 16.000 2 3 May 05 Cost of goods sold 12,000 Merchandise inventory 12.000 4 May 07 Sales returns and allowances 1.600 Accounts receivable 1.600 5 May 07 Merchandise inventory 1.200 Cost of goods sold 1.2001 6 800 Sales returns and allowances May 08 Accounts receivable 800 7 May 15 Cash Sales discounts Accounts receivable