of 2 2 points Sappe Had Print Reference 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 2,000 unite at a price of $7 cash per unit (for a total cost of $14,000). May 5 Allied sold 1,000 of the unite in inventory for $11 per unit (invoice totals $11,000) to Macy Company under credit terme 2/10, n/40. The goods cost Allied $7,000. May 7 Hacy returns 100 units because they did not fit the customer's neede (invoice amounts $1,100). Allied restores the units, which cost $760, to its inventory. May 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 $300 to compensate for the damage. Hay 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is set of returns, allowances, and any cash discount. Exercise 4-6 (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. View transactions 1 Part 1 of 2 Required information View transaction list 2 points Journal entry worksheet < 1 2 3 Salpped Book Prin 5 6 7 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $7 cash per unit (for a total cost of $14,000). Note: Enter debits before credits. Date References May 03 General Journal Debit Credit View general journal Record entry Clear entry