Data for Olaf Corp. and DeVito Ltd. are presented in E5-4 and E5-5.

In E5-4 and E5-5

Olaf Corp. uses a perpetual inventory system. The company had the following inventory transactions in April:

Apr. 3 Purchased merchandise from DeVito Ltd. for $28,000, terms 1/10, n/30, FOB shipping point.

6 The appropriate company paid freight costs of $700 on the merchandise purchased on April 3.

7 Purchased supplies on account for $5,000.

8 Returned damaged merchandise to DeVito and was given a purchase allowance of $3,500. The merchandise was repaired by DeVito and returned to inventory for future resale.

30 Paid the amount due to DeVito in full.

1. The cost of the merchandise sold on April 3 was $19,000.

2. The cost of the merchandise returned on April 8 was $2,300.

3. DeVito uses a perpetual inventory system.

Instructions

Repeat the requirements for E5-4 and E5-5, assuming a periodic inventory system is used instead of a perpetual inventory system.