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Information related to Gilberto Co. is presented below:
1. On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net/30, FOB shipping point.2. On April 6, paid freight costs of $900 on merchandise purchased from Allman.3. On April 7, purchased equipment on account for $26,0004. On April 8, returned damaged merchandise to Allman Company and was granted a $4,000 allowance for returned merchandise5. On April 15, paid the amount due to Allman Company in full.
Instructions:
(a) Prepare the journal entries to record these transactions on the books of Gilberto Co, under a perpetual inventory system.
(b) Assume that Gilberto Co. paid the balance due to Allman Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
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