Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. Both Sydne from Troy: invoice dated May 11; terms 3/10, n/90: FOB shipping point. The goods cost Troy $30,000. Sydney 12 Sydney returns $1.400 of the $40,000 of goods to Troy, who receives them the same day and Exercise 4-7 Recording sales, purchases, shipping, and and Troy use a perpetual inventory system and the gross method. May 11 Sydney accepts delivery of $40,000 of merchandise it purchases for resa pays $345 cash to Express Shipping for delivery charges on the merchandise restores them to its inventory. The returned goods had cost Troy $1,050. 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. le returns-buyer and seller P1 P2 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately Check (1) May 20, Cr Cash, $37,442 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
