Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $38,000 of merchandise it purchases for resale from Troy: invoice dated May l1; terms 3/10, n/90; FOB shipping point. The goods cost Troy $25,460. Sydney pays $425 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,500 of the $38,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,005. 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required 2 Journal Entry: Record the merchandise sold on account! (There are five journal entries!):)

Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
View transaction list
Journal entry worksheet
1
2.
3
<>
Sydney accepts delivery of $38,000 of merchandise it purchases for resale
from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The
goods cost Troy $25,460.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 11
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet 1 2. 3 <> Sydney accepts delivery of $38,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $25,460. Note: Enter debits before credits. Date General Journal Debit Credit May 11
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May 11 Sydney accepts delivery of $38,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms
3/10, n/90; FOB shipping point. The goods cost Troy $25,460. Sydney pays $425 cash to Express Shipping for
delivery charges on the merchandise.
12 Sydney returns $1,500 of the $38,000 of goods to Troy, who receives them the same day and restores them to its
inventory. The returned goods had cost Troy $1,005.
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.
Transcribed Image Text:Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $38,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $25,460. Sydney pays $425 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,500 of the $38,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,005. 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.
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