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Check my work Eine Towing information appies to the questions cisplayed now. Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products. Part 1 of 2 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 $10 cash per unit (for a total cost of $20,000). 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice totalt 521,000) to Macy Co. under credit tern 2/10, n/60. The goods cost Allied $15,000. 7 Macy returns 125 units because they did not fit the customer's needs (invoice amount $1,750). Allied restores the units, which cost $1,250, to its inventory. 8 Macy discovers that 200 units are scuffed but are still of use and therefore, keeps the unit. Allied sende Macy a credit memorandum for SJ00 toward the Original invoice amount to compensate for the damage. 15 Allied receives payment from Nacy for the amount oved on the May 5 purchase payment is net of returns, allowances and any cash discount. Exercise 4.4 Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) Journal entry worksheet Part 1 of 2 Allied sold 1,500 of the units in inventory for $14 per unit (Invoice total: $21,000) to Macy Co. under credit terms 2/10, 1/60

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