Cullumber Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 6 7 Purchased merchandise from Flint Ltd. for $29,680, terms n/30, FOB shipping point. The appropriate company paid freight costs of $742 on the merchandise purchased on April 3. Purchased supplies on account for $5,300. Returned merchandise to Flint and received a credit of $3,710. The merchandise was returned to inventory for future resale. Paid the amount due to Flint in full. 8 30 1. 2. The cost of the merchandise sold on April 3 was $20,140. Flint expected a return rate of 15%. The cost of the merchandise returned on April 8 was $2,438. Flint uses a perpetual inventory system, 3 Date Account Titles and Explanation Debit Credit Anr: 3 Accounts Receivable Sales No Entry 0 0 To record credit sale) Apr: 3 Cost of Goods Sold - Inventory To record cost of merchandise sold) Apr. o Freight Out Cash Apr 8 Sales Returns and Allowances Accounts Receivable c Apr. 6 Freight Out Cash Apr. 8 > Sales Returns and Allowances Accounts Receivable Apr. 8 Inventory Cost of Goods Sold (To record return of goods) Apr. 30 Cash Accounts Recevable To record cost of merchandise returned)