Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $36,000 of merchandise it purchases for resale from Troys invoice dated May 11, terns 3/10, n/90; FOB shipping point. The goods cost Troy $24,120. sydney pays $550 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returna $1,300 of the $36,000 of goods to Troy, who receives then the same day and restores them to its inventory. The returned goods had cost Troy $871. 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 Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet 1 2 3 Date May 11 Sydney accepts delivery of $36,000 of merchandise it purchases for resale from Troy: Invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $24,120. Note: Enter debits before credits. 4 General Journal Debit Credit
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $36,000 of merchandise it purchases for resale from Troys invoice dated May 11, terns 3/10, n/90; FOB shipping point. The goods cost Troy $24,120. sydney pays $550 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returna $1,300 of the $36,000 of goods to Troy, who receives then the same day and restores them to its inventory. The returned goods had cost Troy $871. 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 Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet 1 2 3 Date May 11 Sydney accepts delivery of $36,000 of merchandise it purchases for resale from Troy: Invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $24,120. Note: Enter debits before credits. 4 General Journal Debit Credit
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....
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Transcribed Image Text:Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May 11 Sydney accepts delivery of $36,000 of merchandise it purchases for resale from Troy, invoice dated May 11) terms
3/10, n/90; FOB shipping point. The goods cost Troy $24,120. sydney pays $550 cash to Express Shipping for
delivery charges on the merchandise.
12
Sydney returna $1,300 of the $36,000 of goods to Troy, who receives then the same day and restores them to its
inventory. The returned goods had cost Troy $871.
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 Sydney Retailing (buyer) records for these three transactions.
View transaction list
Journal entry worksheet
1
2
Date
May 11
3
Sydney accepts delivery of $36,000 of merchandise it purchases for resale
from Troy: Invoice dated May 11; terms 3/10, n/90; FOB shipping point. The
goods cost Troy $24,120.
Note: Enter debits before credits.
Record entry
4
General Journal
Clear entry
Debit
Credit
View ganaral journal
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