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$[$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 $$12$ cash per unit $($for a total cost of $$24,000).$May $5$Allied sold $1,000$ of the units in inventory for $$16$ per unit $($invoice total: $$16,000)$ to Macy Company under credit terms $2/10,$ n$/60.$ The goods cost Allied $$12,000.$May $7$Macy returns $100$ units because they did not fit the customer$\mathrm{’}$s needs $($invoice amount: $$1,600).$ Allied restores the units, which cost $$1,200,$ to its inventory.May $8$Macy discovers that $100$ units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction $($allowance$)$ and credits Macy's accounts receivable for $$800$ 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.

Prepare the appropriate journal entries for Macy Company to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system; it purchases these units for resale.

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