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Required information 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 Allied made its first and only purchase of Inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000) May 5 Allied sold 500 of the units in inventory for $14 per unit (invoice totalt $7,000) to Macy Company under credit teres 2/10, n/6e. The goods cost Allied $5,000 May 7 Macy returns 50 units because they did not fit the customer's needs invoice amount: $700). Allied restores the units, which cost $500, to its inventory. Hay 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 $300 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 5-6 (Algo) Recording sales, sales returns, and sales allowances LO P2 Prepare journal entries to record the following transactions for Alled assuming it uses a perpetual inventory system and the gross method

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