Sheridan Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Bramble Ltd. for $31,920, terms n/30, FOB shipping point. 6 The appropriate company paid freight costs of $798 on the merchandise purchased on April 3. 7 Purchased supplies on account for $5.700. 8 Returned merchandise to Bramble and received a credit of $3,990. The merchandise was returned to inventory for future resale. 30 Paid the amount due to Bramble in full. 1. The cost of the merchandise sold on April 3 was $21,660. Bramble expected a return rate of 15%. 2. The cost of the merchandise returned on April 8 was $2,622. 3. Bramble uses a perpetual inventory system. Date Apr. 3 Apr. 3 Apr. 6 Account Titles and Explanation Accounts Receivable Refund Liability Sales (To record credit sale) Cost of Goods Sold Estimated Inventory Returns Inventory (To record cost of merchandise sold) No Entry No Entry (To record return of goods) (To record cost of merchandise returned) Debit $31,920 $18,411 $3,249 0 00 00 Credit $4,78 $27,13 $21,66