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need help ansering No Date General Journal Debit Credit 1 May 11 Merchandise inventory 40,000 Accounts payable 40,000 2 May 12 No Transaction Recorded 3
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No Date General Journal Debit Credit 1 May 11 Merchandise inventory 40,000 Accounts payable 40,000 2 May 12 No Transaction Recorded 3 May 20 No Transaction Recorded navod Prepare journal entries that Sydney Retailing records for these transactions. No Date General Journal Debit Credit 1 May 11 40,000 Purchases Accounts payable 40,000 2 May 11 40,000 X Merchandise inventory Accounts payable 40,000 3 May 12 386 X Accounts payable Discount on bonds payable Cash x 4 May 20 No Transaction Recorded 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; terms 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. 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. 20 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 Retailing records for these transactions. 2. Prepare journal entries that Troy Wholesalers records for these transactionsStep by Step Solution
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