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Exercise 4-10 (Algo) Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $20,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, 1/90, FOB shipping point. The goods cost Troy $13,400. Sydney pays $400 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,500 of the $20,000 of goods to Troy, who receives then the same day and restores them to its inventory. The returned goods had cost Troy $1,005. 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.

Exercise 4-10 (Algo) Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $20,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, 1/90, FOB shipping point. The goods cost Troy $13,400. Sydney pays $400 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,500 of the $20,000 of goods to Troy, who receives then the same day and restores them to its inventory. The returned goods had cost Troy $1,005. 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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m Exercise 4-10 (Algo) Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $20,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $13,400. Sydney pays $400 cash to Express Shipping for delivery charges on the i merchandise. May 12 Sydney returns $1,500 of the $20,000 of goods to Troy, who receives then the same day and restores them to its inventory. The returned goods had cost Troy $1,005. May 20 Sydney pays Tray 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
Transcribed Image Text:m Exercise 4-10 (Algo) Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $20,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $13,400. Sydney pays $400 cash to Express Shipping for delivery charges on the i merchandise. May 12 Sydney returns $1,500 of the $20,000 of goods to Troy, who receives then the same day and restores them to its inventory. The returned goods had cost Troy $1,005. May 20 Sydney pays Tray 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
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