May $11$ Sydney accepts delivery of $$32,000$ of merchandise it purchases for resale from Troy: invoice dated May $11,$ terms $3/10,$ n$/90,$ FOB shipping point. The goods cost Troy $$21,440.$ Sydney pays $$525$ cash to Express Shipping for delivery charges on the merchandise.

May $12$ Sydney returns $$1,400$ of the $$32,000$ 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 pays Troy for the amount owed. Troy receives the cash immediately.