Answer:
Perpetual Inventory System
Gross Method
Date                 Particulars                        Debit              Credit 
3 May             Merchandise Inventory   10,000 
                                Cash                                               10,000
May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). 
5 May               Accounts Receivable Macy  7000
                                              Sales                                    7000
May 5 :Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $5,000. 
5 May              Cost of Goods Sold               5000
                            Merchandise Inventory                        5000    
  
May 7:               Sales   Returns              700
                             Accounts Receivable Macy  700
May 7: Macy returns 50 units because they did not fit the customer’s needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory. 
May 7               Merchandise Inventory       500    
                                          Cost of Goods Sold               500 
May 8           Sales  Returns & Allowance             300
                               Accounts Receivable Macy           300
8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the
damage. 
May 15:              Cash                    6000
                           Sales Discounts     120
                              Accounts Receivable Macy           5880    
Payment : $ 7000- $ 700 - $ 300= $ 6000
Discount : 2% of 6000= $ 120
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.