Exercise 5-5 Olaf Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 6 7 8 30 Purchased merchandise from Sheffield Ltd. for $30,300, terms 1/10, n/30, FOB shipping point. The appropriate company paid freight costs of $670 on the merchandise purchased on April 3. Purchased supplies on account for $5,070. Returned damaged merchandise to Sheffield and was given a purchase allowance of $3,800. The merchandise was repaired by Sheffield and returned to inventory for future resale. Paid the amount due to Sheffield in full. 1. 2. 3. The cost of the merchandise sold on April 3 was $18,970. The cost of the merchandise returned on April 8 was $2,200. Sheffield uses a perpetual inventory system. 30 Cash 2 26500 500 Accounts Payable 26500 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Assume that Sheffield received the balance due from Olaf on April 12 instead of April 30. Prepare the jou automatically indented when the amount is entered. Do not indent manually. If no entry is re answers to the nearest whole dollar, e.g. 5,725.) Date Account Titles and Explanation Debit Credit Apr. 12 Sales Discounts 5070 Tcash 5070 Accounts Receivable 26500