Question 18 of 25 - / 15 E View Policies Current Attempt in Progress The following transactions occurred in April and May. Both companies use a periodic inventory system. Apr. 5 Oriole Company purchased merchandise from DeVito Company for $12,200, terms 2/10,n/30, FOB shipping point. DeVito had paid $8,700 for the merchandise. The correct company paid freight costs of $290. Oriole Company returned damaged merchandise to DeVito Company and was given a purchase allowance of $1,800. DeVito determined the merchandise could not be repaired and sent it to the recyclers. The merchandise had cost DeVito $1,284. Oriole paid the amount due to DeVito Company in full. May 4 Date Account Titles and Explanation Debit Credit (Purchase on account.) (To record cash payment of freight) (To record purchase return) (Payment on account.) MIC Date Account Titles and Explanation Debit Credit (To record sales on account.) (To record credit for goods returned.) (Collection on account.)