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Crane Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 6 7 Purchased merchandise from Swifty Ltd. for $22,960, terms n/30, FOB shipping point. The appropriate company paid freight costs of $574 on the merchandise purchased on April 3. Purchased supplies on account for $4,100. Returned merchandise to Swifty and received a credit of $2,870. The merchandise was returned to inventory for future resale. Paid the amount due to Swifty in full. 8 30 1. 2. The cost of the merchandise sold on April 3 was $15,580. Swifty expected a return rate of 15%. The cost of the merchandise returned on April 8 was $1,886. Swifty uses a perpetual inventory system. 3. Record the transactions in the books of Swifty. (List all debit entries before credit entries. 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 Credi Apr. 3 Accounts Receivable 22960 Sales (To record credit sale) Apr. 3 Cost of Goods Sold Sales Returns and Allowances Inventory (To record cost of merchandise sold) Apr. 6 Freight In 574 Refund Liability Apr. 7 No Entry 0 No Entry Apr. 8 Refund Liability 2870 Accounts Receivable (To record return of goods) Apr. 8 Inventory 1886 (To record cost of merchandise returned) Apr. 304 Cash 20090 Accounts Receivable

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