Exercise 4-7 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 $25, 000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10e, n/9 FOB shipping point. The goods cost Troy $16,750. Sydney pays $675 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,100 of the $25,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $737. 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. X Answer is not complete. 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. No Date General Journal Debit Credit May 11 Merchandise inventory 2,500 X Sales 2,500 X 2 May 11 Cash 675 63
Exercise 4-7 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 $25, 000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10e, n/9 FOB shipping point. The goods cost Troy $16,750. Sydney pays $675 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,100 of the $25,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $737. 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. X Answer is not complete. 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. No Date General Journal Debit Credit May 11 Merchandise inventory 2,500 X Sales 2,500 X 2 May 11 Cash 675 63
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Exercise 4-7 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 $25, 000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/1e, n/90,
FOB shipping point. The goods cost Troy $16,750. Sydney pays $675 cash to Express Shipping for delivery charges on the
merchandise.
12 Sydney returns $1,100 of the $25,000 of goods to Troy, who receives them the same day and restores them to its inventory.
The returned goods had cost Troy $737.
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.
X Answer is not complete.
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.
No
Date
General Journal
Debit
Credit
May 11
Merchandise inventory
2,500 X
Sales
2,500 X
21
May 11
Cash
675 O
Depreciation expense
675
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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.
No
Date
General Journal
Debit
Credit
May 11
Merchandise inventory
2,500 X
Sales
2,500 X
2.
May 11
Cash
675
Depreciation expense
675
3
May 12
Sales returns and allowances
1,100
Accounts receivable
1,100
May 20
Cash
23,900
23,900 X
Accounts receivable
KRequired 1
Required 2 >
Prey
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