Sydney Retailing (Buyer) And Troy Wholesalers (Seller) Enter Into The Following Transactions.
|May||11||Sydney accepts delivery of $31,500 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $21,105. Sydney pays $635 cash to Express Shipping for delivery charges on the merchandise.|
|12||Sydney returns $1,500 of the $31,500 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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