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Exercise 5-10 (Algo) Recording sale purchases, shipping, and returns- and seller LO P1, P2 Sydney Retailing (buyer and Troy Who

Exercise 5-10 (Algo) Recording sale purchases, shipping, and returns- and seller LO P1, P2 Sydney Retailing (buyer and Troy Who

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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Exercise 5-10 (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 $34,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $23,115. Sydney pays $690 cash to Express Shipping for delivery charges on the merchandise. Sydney returns $1,400 of the $34,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $938. Sydney pays Troy for the amount owed. Troy receives the cash immediately. May 12 May 20 (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.
Transcribed Image Text:Exercise 5-10 (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 $34,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $23,115. Sydney pays $690 cash to Express Shipping for delivery charges on the merchandise. Sydney returns $1,400 of the $34,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $938. Sydney pays Troy for the amount owed. Troy receives the cash immediately. May 12 May 20 (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.
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