Question

current attempt in progress
pina colada corp. uses a perpetual inventory system. the company had the following inventory transactions in april.
april 3 purchased merchandise from devito ltd. for $34,000, terms 2/10, n/30, fob shipping point.
6 the appropriate company paid freight costs of $650 on the merchandise purchased on april 3.
7 purchased supplies on account for $5,300.
8 returned merchandise to devito and received a credit of $3,900. the merchandise was returned to inventory for future resale.
30 paid the amount due to devito in full.
record the above transactions on pina coladas books. (credit account titles are automatically indented when the amount is entered. do not indent manually. if no entry is required, select
o entry\ for the account titles and enter 0 for the amount in the relevant debit or credit box. entering zero in all boxes will result in the question being marked incorrect. record journal entries in the order presented in the problem. list all debit entries before credit entries.)

Explanation:

Step1: Record April 3 purchase

Debit Inventory $34,000; Credit Accounts Payable - DeVito Ltd. $34,000. This records the purchase of merchandise on account.

Step2: Record April 6 freight cost

Debit Inventory $650; Credit Cash $650. Freight - in is part of the cost of inventory under FOB shipping - point.

Step3: Record April 7 supplies purchase

Debit Supplies $5,300; Credit Accounts Payable $5,300. Records the purchase of supplies on account.

Step4: Record April 8 merchandise return

Debit Accounts Payable - DeVito Ltd. $3,900; Credit Inventory $3,900. Records the return of merchandise and reduction in accounts payable and inventory.

Step5: Calculate amount due to DeVito

The net amount due to DeVito is $(34,000 - 3,900)=30,100$. Since the payment is made after the discount period (April 3 - April 30 is more than 10 days), no discount is taken.

Step6: Record April 30 payment

Debit Accounts Payable - DeVito Ltd. $30,100; Credit Cash $30,100. Records the full - payment of the amount due to DeVito.

Date	Account Titles and Explanation	Debit	Credit
	Accounts Payable - DeVito Ltd.		$34,000$
April 6	Inventory	$650$
	Cash		$650$
April 7	Supplies	$5,300$
	Accounts Payable		$5,300$
April 8	Accounts Payable - DeVito Ltd.	$3,900$
	Inventory		$3,900$
April 30	Accounts Payable - DeVito Ltd.	$30,100$
	Cash		$30,100$

Answer:

Date	Account Titles and Explanation	Debit	Credit
	Accounts Payable - DeVito Ltd.		$34,000$
April 6	Inventory	$650$
	Cash		$650$
April 7	Supplies	$5,300$
	Accounts Payable		$5,300$
April 8	Accounts Payable - DeVito Ltd.	$3,900$
	Inventory		$3,900$
April 30	Accounts Payable - DeVito Ltd.	$30,100$
	Cash		$30,100$