Current Attempt in Progress The following transactions occurred in April and May. Both companies use a perpetual inventory system Pharoah Company purchased merchandise from DeVito Company for $11.900, terms 2/10, 1/30, FOB shipping point. DeVito had paid $8,500 for the merchandise. 6 The correct company paid freight costs of $400. 8 Pharoah Company returned damaged merchandise to DeVito Company and was given a purchase allowance of $2,000. DeVito determined the merchandise could not be repaired and sent it to the recyclers. The merchandise had cost DeVito $1.429. May 4 Pharoah paid the amount due to DeVito Company in full. Date Account Titles and Explanation Merchandise Inventory 11900 Apr.5 11900 Accounts Payable (Purchase on account.) Freight in Apr. 6 Cash (To record cash payment of freight.) Apr. 8 (To record purchase return.) Accounts Payable May 4 Purchase Discounts (Payment on account.) Textbook and Media Prepare the journal entries to record the above transactions for DeVito Company. (Credit account titles are automatically indented when the indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order pre Date Account Titles and Explanation Debit Credit (To record sales on account.) (To record cost of goods sold.) (To record credit for goods returned.) Calculate the gross profit earned by DeVito on these transactions. Gross profit $