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Required information Skip to question [The following information applies to the questions displayed below.] Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following
Required information
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[The following information applies to the questions displayed below.] Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May | 11 | Sydney accepts delivery of $50,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $31,000. Sydney pays $300 cash to Express Shipping for delivery charges on the merchandise. | ||
May | 12 | Sydney returns $1,000 of the $50,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $620. | ||
May | 20 | Sydney pays Troy for the amount owed. Troy receives the cash immediately. |
(Both Sydney and Troy use a perpetual inventory system and the net method.)
2. Prepare journal entries that Troy Wholesalers records for these transactions.
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