Exercise 4-24A (Algo) Periodic: Recording sales, purchases, shipping, and returns: buyer and seller LO P5 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $35,000 of merchandise it purchases for resale from Troy: invoice dated May 11, teras 3/10, n/90, FOB shipping point. The goods cost Troy $23,450. Sydney pays $340 cash to Express shipping for delivery charge: on the merchandise. May 12 Sydney returns $1,400 of the $35,000 of goods to Troy, who receives then the same day and restores them to its inventory. The returned goods had cost Troy 5938 . May 28 Sydney pays Troy for the amount owed. Troy receives the cash immediately. Assume that both buyer and seller use a periodic inventory system and the gross method. 1. Prepare journal entries that Sydney Retalling (buyer) records for these three transactions. 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. Sydney accepts delivery of $35,000 of merchandise it purchases for resale from Troy: invoice dated May 11 , terms 3/10,n/90, FOB shipping point. The goods cost Troy $23,450. Record Sydney's entry for this transaction. Note: Enter debits before credits. Sydney pays $340 cash to Express Shipping for delivery charges on the merchandise. Record Sydney's entry for this transaction. Note: Enter debits before credits. Sydney returns $1,400 of the $35,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy \$938. Record Sydney's entry for this transaction. Note: Enter debits before credits. Sydney pays Troy for the amount owed. Troy receives the cash immediately. Record Sydney's entry for this transaction. Note: Enter debits before credits