On May 11, Sydney Co. accepts delivery of $23,000 of merchandise it purchases for resale from Troy Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Troy $15,410. When the goods are delivered, Sydney pays $435 to Express Shipping for delivery charges on the merchandise. On May 12, Sydney returns $1,740 of goods to Troy, who receives them one day later and restores them to inventory. The returned goods had cost Troy $1,166. On May 20, Sydney mails a check to Troy Corporation for the amount owed. Troy receives it the following day. (Both Sydney and Troy use a perpetual inventory system.)

1.	Prepare journal entries that Sydney Co. records for these transactions. 2. Prepare journal entries that Troy Corporation records for these transactions.