Question 12 Olaf Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 6 7 Purchased merchandise from Concord Ltd. for $30,500, terms 1/10, n/30, FOB shipping point. The appropriate company paid freight costs of $680 on the merchandise purchased on April 3. Purchased supplies on account for $5,330. Returned damaged merchandise to Concord and was given a purchase allowance of $3,600. The merchandise was repaired by Concord and returned to inventory for future resale. 8. 30 Paid the amount due to Concord in full. 1. 2. The cost of the merchandise sold on April 3 was $19,390. The cost of the merchandise returned on April 8 was $2,500. Concord uses a perpetual inventory system. 3. Date Account Titles and Explanation Debit Credit Apr. 3 ||Supplies Expense 130500 (To record credit sale) 3 19390 (To record cost of merchandise sold) 6 cash 680 Z x X 7 8 (To record return of goods) 8 2500 (To record cost of merchandise returned) 30 Cash 30 TCash O x TAccounts Receivable Date Account Titles and Explanation Debit Credit X Apr. 12 Sales Discounts 3600 x Cash 3600 X Accounts Receivable SHOW LIST OF ACCOUNTS