Exercise 5-10 (Algo) 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 $38,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/98, FOB shipping point. The goods cost Troy $25,460. Sydney pays $670 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,500 of the $38,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,005. May 20 Sydney pays Troy for the amount owed. Troy receives the cash inmediately. (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 1 2 3 4 Sydney accepts delivery of $38,000 of merchandise it purchases for resale Journal entry worksheet < 1 2 3 4 Ces Sydney accepts delivery of $38,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $25,460. Record Sydney's entry for this transaction. Note: Enter debits before credits. Date May 11 General Journal Debit Credit Record entry Clear entry View general journal es Journal entry worksheet > 1 3 4 Sydney pays $670 cash to Express Shipping for delivery charges on the merchandise. Record Sydney's entry for this transaction. Note: Enter debits before credits. Date May 11 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > 1 2 3 4 Sydney returns $1,500 of the $38,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,005. Record Sydney's entry for this transaction. Note: Enter debits before credits. Date May 12 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Sydney pays Troy for the amount owed. Troy receives the cash immediately. Record Sydney's entry for this transaction. Note: Enter debits before credits. Date May 20 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 Sydney accepts delivery of $38,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $25,460. 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 Journal entry worksheet < 1 3 4 5 The goods cost Troy $25,460. 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 Journal entry worksheet > 1 2 4 5 Sydney returns $1,500 of the $38,000 of goods to Troy, who receives them the same day and restores them to its inventory. Record Troy's entry for this transaction. Note: Enter debits before credits. Date May 12 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 The returned goods had cost Troy $1,005. Record Troy's entry for this transaction. Note: Enter debits before credits. Date May 12 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 Sydney pays Troy for the amount owed. Troy receives the cash immediately. Record Troy's entry for this transaction. Note: Enter debits before credits. Date May 20 General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 2