Question

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 $310 cash to Express Shipping for delivery charges on the merchandise.
		12		Sydney returns $1,300 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 $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.)

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 $310 cash to Express Shipping for delivery charges on the merchandise 12 Sydney returns $1,300 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 $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 Required1Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet 2 4 Sydney pays Troy for the amount owed. Troy receives the cash immediately Note: Enter debits before credits. Date General Journal Debit Credit May 20Accounts payable 36,700 rchandise inventory This is a numeric cell, so please enter numbers only.

Answer 1

1
May 11	Merchandise inventory	38000
	Accounts Payable		38000
May 11	Merchandise inventory	310
	Cash		310
May 12	Accounts Payable	1300
	Merchandise inventory		1300
May 20	Accounts Payable	36700
	Merchandise inventory		1101	=36700*3%
	Cash		35599
2
May 11	Accounts Receivable	38000
	Sales		38000
May 11	Cost of goods sold	25460
	Merchandise inventory		25460
May 13	Sales return and Allowances	1300
	Accounts Receivable		1300
May 13	Merchandise inventory	871
	Cost of goods sold		871
May 21	Cash	35599
	Sales discounts	1101		=36700*3%
	Accounts Receivable		36700