Tune 10 12 Question 5 The following transactions were recorded by an inexperienced bookkeeper during the months of June and July for Crane Company, Crane Company were perpetual Inventory system A purchase of $4,100 of merchandise from DanDan Distributors was debited to purchases and credited to cash. The terms of the purchase were 2/10, 1/30, FOB shipping point The invoice for freight in the amount of $20 for the delivery of merchandise purchased from DanDan was paid and was debited to delivery Experte Damaged goods totailing 5400 were returned to Dandan Distributirs for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. 20 A payment was made to DanDan Distributors for the June 10 purchase. The payment was recorded as a debit to Purchases and a credit to Cash July 15 Crane sold goods for $9,325, Sales was credited and cost of Goods Sold was debited for this amount. The cost of the inventory cold was $4,300. The terma of the sale were 1/15, 130, FOB destination. Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $195. The bookkeeper believed the customer had to 15 pay for the freight charges. Crane's manager gave the customer from July 15 a $400 allowance. The entry made to record the allowance was a debit to Sales and a credit to Sales Returns and Allowances. dy 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, FOB shipping point. Devita had paid 7.900 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 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