! Required information [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 $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. May 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. 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 (seller) records for these three transactions. View transaction list N a + O Record the merchandise sold on account. Date May 11 General Journal Debit Credit Accounts receivable 40,000 Sales 40,000 lote: Enter debits before credits. Journal entry worksheet < 1 2 3 4 5 Record the cost of goods sold. Note: Enter debits before credits. Date May 11 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > 1 2 3 4 Record the sales return. Note: Enter debits before credits. Date May 12 LO General Journal Debit Credit > Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 Record the cost of sales return. Note: Enter debits before credits. Date May 12 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet > 1 2 3 4 5 Record the cash collected for credit sales. Note: Enter debits before credits. Date May 20 General Journal Debit Credit Record entry Clear entry View general journal