3 6 Carla Vista Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April Purchased merchandise from Monty Ltd. for $26,880, terms n/30, FOB shipping point. The appropriate company paid freight costs of $672 on the merchandise purchased on April 3. 7 Purchased supplies on account for $4,800. 8 Returned merchandise to Monty and received a credit of $3,360. The merchandise was returned to inventory for future resale. Paid the amount due to Monty in full. 30 1. 2. 3. The cost of the merchandise sold on April 3 was $18,240. Monty expected a return rate of 15%. The cost of the merchandise returned on April 8 was $2,208. Monty uses a perpetual inventory system. Date Account Titles and Explanation Debit Credit (To record credit sale) (To record cost of merchandise sold) (To record return of goods) (To record cost of merchandise returned)