Question 1 View Policies Current Attempt in Progress The following transactions occurred in April and May. Both companies use a perpetual inventory system and the contract-based approach for revenue recognition, Blossom Company's management estimates returns at 20% of sales and has a stated return policy of 20 days from the date of sale. Apr. 5 Fleck Company purchased merchandise from Blossom Company for $10,000, terms 130, FOB shipping point, Blossom paid $7.700 for the merchandise 6 The correct company paid freight costs of $400. 8 Fleck Company returned damaged merchandise to Blossom Company and was given a purchase allowance of $1,800, Blossom determined the merchandise could not be repaired and sent it to the recyclers. The merchandise had cost Blossom $1,386. May 4 Fleck paid the amount due to Blossom Company in full Question 1 View Policies Current Attempt in Progress The following transactions occurred in April and May. Both companies use a perpetual inventory system and the contract-based approach for revenue recognition, Blossom Company's management estimates returns at 20% of sales and has a stated return policy of 20 days from the date of sale. Apr. 5 Fleck Company purchased merchandise from Blossom Company for $10,000, terms 130, FOB shipping point, Blossom paid $7.700 for the merchandise 6 The correct company paid freight costs of $400. 8 Fleck Company returned damaged merchandise to Blossom Company and was given a purchase allowance of $1,800, Blossom determined the merchandise could not be repaired and sent it to the recyclers. The merchandise had cost Blossom $1,386. May 4 Fleck paid the amount due to Blossom Company in full