FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:May 11 Sydney accepts delivery of $27,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90,
FOB shipping point. The goods cost Troy $18,425. Sydney pays $470 cash to Express Shipping for delivery charges on the
merchandise.
May 12
Sydney returns $1,100 of the $27,500 of goods to Troy, who receives them the same day and restores them to its inventory..
The returned goods had cost Troy $737.
May 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.
(Both Sydney and Troy use a perpetual inventory system and the gross method.)
1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
View transaction list View journal entry worksheet
2
Syaney accepts delivery or $27,50U or mercnanaise it
purchases for resale from Troy: invoice dated May 11,
terms 3/10, n/90, FOB shipping point. The goods cost
Troy $18,425. Record Troy's entry for this transaction.
4
The goods cost Troy $18,425. Record Troy's entry for this
transaction.
3 Sydney returns $1,100 of the $27,500 of goods to Troy,
who receives them the same day and restores them to its
inventory. Record Troy's entry for this transaction.
The returned goods had cost Troy $737. Record Troy's
entry for this transaction.
5 Sydney pays Troy for the amount owed. Troy receives the
EX
Required 2 D
Debit
Credit
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