Use the following information for the Exercises below.

$[$The following information applies to the questions displayed below.$]$

Allied 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 $2,000$ units at a price of $$12$

cash per unit $($for a total cost of $$24,000).$

May $5$ Allied sold $1,000$ of the units in inventory for $$16$ per unit $($invoice total: $$16,000)$ to Macy Company under

credit terms $\frac{2}{10},\frac{n}{60}.$ The goods cost Allied $$12,000.$

May $7$ Macy returns $100$ units because they did not fit the customer's needs $($invoice amount: $$1,600).$ Allied restores

the units, which cost $$1,200,$ 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 $$800$ 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.

Exercise $4-8($Algo$)$ Recording purchases, purchases returns, and purchases allowances LO P$1$

Prepare the appropriate journal entries for Macy Company 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.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field