May 7 Increase/Decrease Amount 12.000 May 8 Increase/Decrease Amount Amount May 15 Increase/Decrease Amount 208 (+) increase 12,000 (-) decrease 8.000(-) decrease 4,000 (-) decrease 1,200 (+) increase 1,200 (-) decrease 800 400-) decrease (+) increase 400 400 (-) decrease 400(-) decrease units because they did not fit the customer's needs (invoice amount: $1,200) restores the units, which cost $800, to its inventory. May 8 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the unit Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $488 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase: payment is net returns, allowances, and any cash discount. Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, ic accounts and amounts (including + or -) for each transaction. Income Statement Components May 3 Increase/Decrease May 5 ME Amount Increase/Decres Increase/Decrease (+) increase Amount 12,000 Sales Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit (+) increase (+) increase (+) increase (+) increase 12.000 (-) decrease 8,000 (-) decrease 4,000(-) decrease 3 Check my v Required information [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 $8 cash per unit (for a total cost of $16,000). May 5 Allied sold 1,000 of the nits in inventory for $12 per unit (invoice total: $12,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $8,000. May 7 Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,200). Allied restores the units, which cost $800, 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 $400 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. se the above informations, analyze each transaction by indicating its effects on the income statement-specifi entify the accounts and amounts (including + or -) for each transaction. May 3 May 5