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Riverbed Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from DeVito Ltd. for $25,900,
Riverbed Corp. uses a perpetual inventory system. The company had the following inventory transactions in April:
April | 3 | Purchased merchandise from DeVito Ltd. for $25,900, terms 1/10, n/30, FOB shipping point. | ||
6 | The appropriate company paid freight costs of $760 on the merchandise purchased on April 3. | |||
7 | Purchased supplies on account for $5,350. | |||
8 | Returned damaged merchandise to DeVito and was given a purchase allowance of $3,700. The merchandise was repaired by DeVito and returned to inventory for future resale. | |||
30 | Paid the amount due to DeVito in full. |
Assume that Riverbed paid the balance due to DeVito on April 12 instead of April 30. Prepare the journal entry to record this payment on Riverbed s books.
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