This information relates to Olaf Co.1. On April 5, purchased merchandise from DeVito Company for $18,000, terms 2/10, net/30, FOB shipping point.2. On April 6, paid freight costs of $820 on merchandise purchased from DeVito Company.3. On April 7, purchased equipment on account for $30,000.4. On April 8, returned some of April 5 merchandise, which cost $2,800, to DeVito Company.5. On April 15, paid the amount due to DeVito Company in full.Instructions(a) Prepare the journal entries to record these transactions on the books of Olaf Co. using a periodic inventory system.(b) Assume that Olaf Co. paid the balance due to DeVito Company on May 4 instead of April 15. Prepare the journal entry to record this payment.View Solution:
This information relates to Olaf Co 1 On April 5

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