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 Co. 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 3,000 units at a price of $11 cash per unit (for a total cost of $33,000). 5 Allied sold 1,500 of the units in inventory for $15 per unit (invoice total: $22,500) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $16,500. 7 Macy returns 150 units because they did not fit the customer's needs (invoice amount: $2,250). Allied restores the units, which cost $1,650, to its inventory. 8 Macy discovers that 150 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $1,050 toward the original invoice amount to compensate for the damage. 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. Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Date Credit General Journal Cost of goods sold Merchandise inventory Debit 22,500 May 05 22,500 Journal entry worksheet Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Note: Enter debits before credits. General Journal Debit Credit Date May 15 Cash Sales discounts Accounts receivable