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Question 1 The following transactions occurred in April and May. Both companies use a perpetual inventory system. Apr. 5 Crane Company purchased merchandise from Devito Company for $12,400, terms 2/10, n/30, FOB shipping point. Devito had paid $8,100 for the merchandise. The correct company paid freight costs of $330. 8 Crane Company returned damaged merchandise to Devito Company and was given a purchase allowance of $1,700. Devito determined the merchandise could not be repaired and sent it to the recyclers. The merchandise had cost Devito $1,230. May 4 Crane paid the amount due to Devito Company in full. Prepare the journal entries to record the above transactions for Crane Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTSPrepare the journal entries to record the above transactions for Devito Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost) SHOW LIST OF ACCOUNTS Calculate the gross profit earned by Devito on these transactions. Gross profit $