The following transactions occurred in April and May. Both companies use a perpetual inventory system. Apr. 5 Ivanhoe Company purchased merchandise from DeVito Company for $12,700, terms 2/10, 1/30, FOB shipping point. DeVito had paid $7,500 for the merchandise. 6 The correct company paid freight costs of $400. 8 Ivanhoe 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 $1,122 May 4 Ivanhoe paid the amount due to DeVito Company in full Prepare the journal entries to record the above transactions for Ivanhoe Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (Purchase on account.) (To record cash payment of freight.) (To record purchase return.) (Payment on account.) Date Account Titles and Explanation Debit Credit (To record sales on account.) (To record cost of goods sold.) (To record credit for goods returned.) (Collection on account.) e Textbook and Media Calculate the gross profit earned by DeVito on these transactions. Gross profit $ e Textbook and Media List of Accounts