Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $24,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $16,415. Sydney pays $470 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,500 of the $24,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,005. 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.
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $24,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $16,415. Sydney pays $470 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,500 of the $24,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,005. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Journal entry worksheet
1
3
4
>
Sydney accepts delivery of $24,500 of merchandise it purchases for resale
from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The
goods cost Troy $16,415.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 11
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5f2ec32-bb00-431c-981a-9196588026c3%2Fff4c0f3c-e983-47f8-bae3-f02fe6e84aab%2Fs8xxgv6_processed.png&w=3840&q=75)
Transcribed Image Text:Journal entry worksheet
1
3
4
>
Sydney accepts delivery of $24,500 of merchandise it purchases for resale
from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The
goods cost Troy $16,415.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 11
Record entry
Clear entry
View general journal
![Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May 11 Sydney accepts delivery of $24,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms
3/10, n/90, FOB shipping point. The goods cost Troy $16,415. Sydney pays $470 cash to Express Shipping for
delivery charges on the merchandise.
12 Sydney returns $1,500 of the $24,500 of goods to Troy, who receives them the same day and restores them to its
inventory. The returned goods had cost Troy $1,005.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5f2ec32-bb00-431c-981a-9196588026c3%2Fff4c0f3c-e983-47f8-bae3-f02fe6e84aab%2Faoluu2y_processed.png&w=3840&q=75)
Transcribed Image Text:Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May 11 Sydney accepts delivery of $24,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms
3/10, n/90, FOB shipping point. The goods cost Troy $16,415. Sydney pays $470 cash to Express Shipping for
delivery charges on the merchandise.
12 Sydney returns $1,500 of the $24,500 of goods to Troy, who receives them the same day and restores them to its
inventory. The returned goods had cost Troy $1,005.
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.
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