Question 12 Olaf Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Bramble Ltd. for $30,200, terms 1/10, n/30, FOB shipping point. 6 The appropriate company paid freight costs of $690 on the merchandise purchased on April 3. 7 Purchased supplies on account for $5,000. 8 Returned damaged merchandise to Bramble and was given a purchase allowance of $3,200. The merchandise was repaired by Bramble and returned to inventory for future resale. 30 Paid the amount due to Bramble in full. 1. 2. 3. The cost of the merchandise sold on April 3 was $19,040. The cost of the merchandise returned on April 8 was $2,400. Bramble uses a perpetual inventory system. (a) Your answer is correct. Record the transactions in the books of Bramble. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 3 Accounts Receivable 30200 I Sales 30200 (To record credit sale) 3 Cost of goods sold 19000 Inventory 19040 (To record cost of merchandise sold) No Entry No Entry 30 Sales 30200 (To record credit sale) 3 Cost of goods sold 1904011 Inventory I 19040 (To record cost of merchandise sold) 6 No Entry No Entry 7 No Entry No Entry 8 Sales Returns and Allowances 3200 Accounts Receivable 3200 (To record return of goods) 8 Tinventory 2401 Cost of Goods Sold (To record cost of merchandise returned) 30 Cash 27000 Accounts Receivable vable 27000 (b) Your answer is partially correct. Try again Assume that Bramble received the balance due from Olaf on April 12 instead of April 30. Prepare the journal entry to record this collection on Bramble's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to the nearest whole dollar, e.g. 5,725.) Date Account Titles and Explanation Debit Credit Apr. 12 Sales Discounts 26730 Cash 270 Accounts Receivable 27000