Exercise $4-10($Algo$)$ Recording sales, purchases, shipping, and returns$-$buyer and seller LO P$1,$ P$2$

Sydney Retailing $($buyer$)$ and Troy Wholesalers $($seller$)$ enter into the following transactions.

May $11$ Sydney accepts delivery of $$37,000$ of merchandise it purchases for resale from Troy: invoice dated May $11,$ terms $\frac{3}{10},\frac{n}{90},$ FOB shipping point. The goods cost Troy $$24,790.$ Sydney pays $$475$ cash to Express Shipping for delivery charges on the merchandise.

May $12$ Sydney returns $$1,400$ of the $$37,000$ of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $$938.$

May $20$ Sydney pary Troy for the amount owed. Troy receives the cash immediately.

$($Both Sydney and Troy use a perpetual inventory system and the gross method.$)$

Prepare journal entries that Sydney Retailing $($buyer$)$ records for these three transactions.

Prepare journal entries that Troy Wholesalers $($seller$)$ records for these three transactions.

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Prepare journal entries that Sydney Retailing $($buyer$)$ records for these three transactions.