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

*could you pls show me the exact steps for the CGS?*

May		11		Sydney accepts delivery of $27,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $18,090. Sydney pays $320 cash to Express Shipping for delivery charges on the merchandise.
		12		Sydney returns $1,200 of the $27,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $804.
		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.)

Record the cost of goods sold.

Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Date General Journal Debit Credit May 11 25,386 Cost of goods sold Merchandise inventory 24,996 Record entry Clear entry View general journal