Exercise 4-10 (Static) Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 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, tera 3/10, n/90, FOB shipping point. The goods cost 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 cost 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 gross method.) 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet 4 Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. View transaction list View journal entry worksheet No Date General Journal 1 May 11 Merchandise inventory Accounts payable 2 May 11 Merchandise inventory Cash 3 May 12 Accounts payable Merchandise inventory 4 May 20 Accounts payable Cash Merchandise inventory < Required 1 Required 2 > Debit 40,000 Credit 40,000 345 345 1,400 1,400 Required 1 Required 2 Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. View transaction list Journal entry worksheet 1 2 3 4 5 Sydney accepts delivery of $40,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $30,000. Record Troy's entry for this transaction. Note: Enter debits before credits. Date May 11 General Journal Debit Credit Record entry Clear entry View general journal :X: s 1 Sydney accepts delivery of $40,UUU or merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $30,000. Record Troy's entry for this transaction. 2 The goods cost Troy $30,000. Record Troy's entry for this transaction. 3 Sydney returns $1,400 of the $40,000 of goods to Troy, who receives them the same day and restores them to its inventory. Record Ty's entry for this transaction. 4 The returned goods had cost Troy $1,050. Record Troy's entry for this transaction. 5 Sydney pays Troy for the amount owed. Troy receives the Note: = journal entry has been entered esale ht. The Credi Record entry Clear entry