Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions May 11 Sydney accepts delivery of $37,500 of merchandise it purchases for resale from Troy: invoice dated May 11, teras 3/10, n/90 FOB shipping point. The goods cost Troy $25,125. Sydney pays $600 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,400 of the $37,500 of goods to Troy, who receives then the same day and restores them to its inventory. The returned goods had cost Troy $938. 26 Sydney pays Troy for the amount owed. Troy receives the cash immediately (May 29 is within the discount period). (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 Troy Wholesalers (seller) records for these three transactions. View transaction list Journal entry worksheet 3 Record the cost of goods sold. Note: Enter debits before credits. Date May 11 Record entry (Gentral Journal Clear entry < Required 1 Debit View general journal
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions May 11 Sydney accepts delivery of $37,500 of merchandise it purchases for resale from Troy: invoice dated May 11, teras 3/10, n/90 FOB shipping point. The goods cost Troy $25,125. Sydney pays $600 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,400 of the $37,500 of goods to Troy, who receives then the same day and restores them to its inventory. The returned goods had cost Troy $938. 26 Sydney pays Troy for the amount owed. Troy receives the cash immediately (May 29 is within the discount period). (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 Troy Wholesalers (seller) records for these three transactions. View transaction list Journal entry worksheet 3 Record the cost of goods sold. Note: Enter debits before credits. Date May 11 Record entry (Gentral Journal Clear entry < Required 1 Debit View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions
May 11 Sydney accepts delivery of $37,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90,
FOB shipping point. The goods cost Troy $25,125. Sydney pays $600 cash to Express Shipping for delivery charges on the
merchandise.
12 Sydney returns $1,489 of the $37,500 of goods to Troy, who receives then the same day and restores them to its inventory.
The returned goods had cost Troy $938.
20 Sydney pays Troy for the amount owed. Troy receives the cash immediately (May 20 is within the discount period).
(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 Troy Wholesalers (seller) records for these three transactions.
View transaction list
Journal entry worksheet
3
Record the cost of goods sold.
Note: Enter debits before credi
Date
May 11
Record entry
4 5
(Gentral Journal
Clear entry
< Required 1
Debic
Credit
View general journal
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