2. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period. and (c) cash collection after the discount period. Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. Both Sydney Exercise 5-7 and Troy use a perpetual inventory system and the gross method. Recording sales May 11 Sydney accepts delivery of $40,000 of merchandise it purchases for resale from Troy: invoice purchases, shipping, and dated May 11. terms 3/10, n/90, FOB shipping point. The goods cost Troy $30,000. Sydney returns-buyer and seller pays $345 cash to Express Shipping for delivery charges on the merchandise. P1 P2 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 cost Troy $1,050. 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. Check (1) May 20 CE Cash 537442 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions Satu Taccounts for Merchandise Exercise 5-8 - 1