Question 4 The following transactions occurred in April and May. Both companies use a perpetual inventory system Apr. 5 Wildhorse Company purchased merchandise from Devito Company for $12,300, terms 2/10, 1/30, Fox shipping point. DeVito had paid $7.900 for the merchandise The correct company paid freight costs of $430 Wildhorse Company returned damaged merchandise to DeVito Company and was given a purchase allowance of $1,900. DeVito determined the merchandise could not be repaired and sent it to the recyclers. The merchandise had cost DeVito $1,410. May 4 Wildhorse paid the amount due to DeVito Company in full. 6