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 1,000 units at a price of $9 cash per unit (for a total cost of $9,000). may 5 allied sold 500 of the units in inventory for $13 per unit (invoice total: $6,500) to macy company under credit terms 2/10, n/60. the goods cost allied $4,500. may 7 macy returns 50 units because they did not fit the customer’s needs (invoice amount: $650). allied restores the units, which cost $450, to its inventory. may 8 macy discovers that 50 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 $250 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.