Santa Fe Retailing purchased merchandise as is (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $28,300. The merchandise had cost Mesa $19,301. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period.

Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.

May		11		Sydney accepts delivery of $37,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $24,790. Sydney pays $345 cash to Express Shipping for delivery charges on the merchandise.
		12		Sydney returns $1,400 of the $37,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $938.
		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.) 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.

A company reports the following sales-related information.

Sales, gross	$	220,000		Sales returns and allowances	$	15,000
Sales discounts		4,400		Sales salaries expense		10,400

Prepare the net sales portion only of this companys multiple-step income statement.