1 Exercise 4-7 Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 6 Joints Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions May 11 Sydney accepts delivery of $27,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $18,425. Sydney pays $310 cash to Express Shipping for delivery charges on the merchandise 12 Sydney returns $1,200 of the $27,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy 5804. 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.) eBook Hint 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 Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet Record the merchandise sold on account Note: Enter debits before credits Credit General Journal Date May 11 Deblt 27 5001 Accounts receivable Sales 27.500 Prey 1 of Next Mc Graw Hill