Exercise 5-10 (Algo) Recording sales,purchases, shipping, and returns-buyerand seller LO P1, P2Sydney Retailing (buyer) and Troy Wholesalers(seller) enter into the following transactions.May 11 Sydney accepts delivery of $34,500 ofmerchandise it purchases for resalefrom Troy: invoice dated May 11, terms3/10, n/90, FOB shipping point. Thegoods cost Troy $23,115. Sydney pays$690 cash to Express Shipping fordelivery charges on the merchandise.Sydney returns $1,400 of the $34,500of goods to Troy, who receives themthe same day and restores them to itsinventory. The returned goods had costTroy $938.Sydney pays Troy for the amount owed.Troy receives the cash immediately.May 12May 20(Both Sydney and Troy use a perpetualinventory system and the gross method.)1. Prepare journal entries that Sydney Retailing(buyer) records for these three transactions.2. Prepare journal entries that TroyWholesalers (seller) records for these threetransactions.

The basic documentation of each transaction that is put into financial accounting is referred to as…

Answered: Exercise 5-10 (Algo) Recording sale…

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

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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Question

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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