Instru Deter E5-1 ord purchase and sales usactions-perpetual em. (1.01,23) AP Instructions (a) Prepare the journal entries to record the above transactions for Olaf Company. (b) Prepare the journal entries to record the above transactions for DeVito Company. (c) Calculate the gross profit earned by DeVito on these transactions. 5.3-6 The following merchandise transactions occurred in December. Both companies use a perpetual inve system. Dec. 3 Pippen Company sold merchandise to Thomas Co, for $32,000, terms 2/10, n/30, FOB destination merchandise cost Pippen Company $18,000. 4 The correct company paid freight charges of $650. 8 Thomas Co. returned unwanted merchandise to Pippen. The returned merchandise had a sales prices $1,800 and a cost of $990. It was restored to inventory. 13 Pippen Company received the balance due from Thomas Co. Instructions Client (a) Prepare the journal entries to record these transactions on the books of Pippen Company. ((b) Prepare the journal entries to record these transactions on the books of Thomas Co. (C) Assuming that Thomas Co, had a balance in Merchandise Inventory on December 1 of $6,000, determine the balance in the Merchandise Inventory account at the end of December for Thomas Co. E5-7 The following transactions were recorded by an inexperienced bookkeeper during the months of June u July for Jilly Bean Company, Jilly Bean Company uses a perpetual inventory system. June 10 A purchase of $4,000 of merchandise from Dan Dan Distributors was debited to Purchases and credi to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point. 11 The invoice for freight in the amount of 5225 for the delivery of merchandise purchased from Dan was paid and was debited to Delivery Expense 12 Damaged goods totalling $200 were returned to Dan Dan Distributors for credit. The booklet d correct inventory actions-perpetual n. (LO 2, 3) AN