Allied purchased 2,000 inventory units on May 3 for $10 per unit, totaling $20,000. On May 5, Allied sold 1,500 units to Macy for $14 per unit, totaling $21,000 on credit terms of 2/10, n/60. The cost of the goods sold to Macy was $15,000. On May 7, Macy returned 125 units that did not fit customer needs, with an invoice amount of $1,750.