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.) a. Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $12 cash per unit (for a total cost of $12,000).
b. Allied sold 500 of the units in inventory for $16 per unit (invoice total: $8,000) to Macy Co. under credit terms 2/10, n/60.
c. Record the cost of goods sold.
d. Macy returns 50 units because they did not fit the customer's needs (invoice amount: $800).
e. Allied restores the units, which cost $600, to its inventory.
f. Macy discovers that 50 units are scuffed but are still of use and therefore, keeps the units. Allied sends Macy a credit memorandum for $400 toward the original invoice amount to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.