12 k ces 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 1 000 units at a price of 9 cash per unit for a total cost of 9 000 May 5 Allied sold 500 of the units in inventory for 13 per unit invoice total 6 500 to Macy Company under credit terms 2 10 n 60 The goods cost Allied 4 500 May 7 Macy returns 50 units because they did not fit the customer s needs invoice amount 650 Allied restores the units which cost 450 to its inventory May 8 Macy discovers that 50 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 250 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 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 View transaction list Journal entry worksheet 1 1 2 3 4 5 Check my