Question 4 The following transactions occurred in April and May. Both companies use a perpetual inventory system. Apes Wildhorse Company purchased merchandise from Devito Company for $12,300, terms 2/10, 1/30, FOB shipping point. DeVito had paid 57.900 for the merchandise 6 The correct company paid freight costs of $430. 8 Wildhorse Company returned damaged merchandise to DeVito Company and was given a purchase allowance of $1,900. DeVito determined the marchandise 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