On May 11, Sydney Co. accepts delivery of $29,000 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 $19,430. When the goods are delivered, Sydney pays $535 to Express Shipping for delivery charges on the merchandise. On May 12, Sydney returns $2,140 of goods to Troy, who receives them one day later and restores them to inventory. The returned goods had cost Troy $1,434. 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.

Entry #1: On May 11, Sydney Co. accepts delivery of $29,000 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 $19,430.

Entry#2: When the goods are delivered, Sydney pays $535 to Express Shipping for delivery charges on the merchandise.

Entry#3: On May 12, Sydney returns $2,140 of goods to Troy, who receives them one day later and restores them to inventory. The returned goods had cost Troy $1,434

Entry#4: On May 20, Sydney mails a check to Troy Corporation for the amount owed. Troy receives it the following day.

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

Entry#1: Record the merchandise sold on account.

Enrty#2: Record the cost of goods sold

Enrty#3: Record the sales return.

Entry#4:Record the cost of sales return.

Entry #5: Record the cash collected for credit sales.