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Required information (The following information applies to the questions displayed below) Sydney Retailing (buyer) and...

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Accounting

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Required information (The following information applies to the questions displayed below) Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $40,000 of merchandise it purchases for resale from Troy: invoice dated May 11, termo 3/10, 1/90, rom shipping point. The goods cout Troy $30,000. Sydney pays $345 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,400 of the $40,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cont Troy $1,050. May 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the net method.) 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions Answer is not complete. General Journal No Credit Date May 11 Debit 40,000 1 Accounts receivable Sales 40,000 2 May 11 Cost of goods sold Merchandise inventory olo 30,000 30,000 May 12 Salos returns and alowances Accounts receivable olo 1,400 1,400 4 May 12 1,050 Merchandise inventory Cost of goods sold 1.050 6 May 20 37,442 Cash Sales discounts Accounts receivable 1.158 38,500

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