Refer to the information in E5-4 for Olaf Corp. and the following additional information:

In E5-4

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

(a) Record the transactions in the books of DeVito.

(b) Assume that DeVito received the balance due from Olaf on April 12 instead of April 30. Prepare the journal entry to record this collection on DeVito's books.