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Question - The following transactions occurred in April and May. Both companies use a perpetual inventory system.
Apr. 5 Carla Vista Company purchased merchandise from DeVito Company for $12,100, terms 2/10, n/30, FOB shipping point. DeVito had paid $7,900 for the merchandise.
Apr. 6 The correct company paid freight costs of $300.
Apr. 8 Carla Vista Company returned damaged merchandise to DeVito Company and was given a purchase allowance of $1,600. DeVito determined the merchandise could not be repaired and sent it to the recyclers. The merchandise had cost DeVito $1,045.
May 4 Carla Vista paid the amount due to DeVito Company in full.
Required - Prepare the journal entries to record the above transactions for Carla Vista Company.
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