Exerclse $5-10($Static$)$ 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 $$49,90$ of merchandise it purchases for resale from Troy: invoice dated May $11,$ terms $\frac{3}{10},$ n$/90,$

FOB shipping point. The goods cost Troy $$30,00.$ Sydney pays $$345$ cash to Express Shipping for delivery charges on the

merchandise.

May $12$ Sydney returns $$1,40$ of the $$40,60$ of goods to Troy, who receives them the same day and restores them to its inventory.

The returned goods had cost Troy $$1,$ e$50.$

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.$)$

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

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

Complete this question by entering your answers in the tabs below.

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

Journal entry worksheet

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 Sydney's entry for this transaction.

Note: Enter debits before credits.