Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $22,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $15,075. Sydney pays $580 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,200 of the $22,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $804. 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 Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet 1 2 3 4 Sydney accepts delivery of $22,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $15,075. Record Sydney's entry for this transaction. >
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $22,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $15,075. Sydney pays $580 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,200 of the $22,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $804. 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 Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet 1 2 3 4 Sydney accepts delivery of $22,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $15,075. Record Sydney's entry for this transaction. >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May 11 Sydney accepts delivery of $22,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms
3/10, n/90, FOB shipping point. The goods cost Troy $15,075. Sydney pays $580 cash to Express Shipping for
delivery charges on the merchandise.
May 12 Sydney returns $1,200 of the $22,500 of goods to Troy, who receives them the same day and restores them to its
inventory. The returned goods had cost Troy $804.
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 Sydney Retailing (buyer) records for these three transactions.
View transaction list
Journal entry worksheet
1
2
3 4
Sydney accepts delivery of $22,500 of merchandise it purchases for resale
from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The
goods cost Troy $15,075. Record Sydney's entry for this transaction.
>
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