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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

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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. Record Sydney's entry for this transaction. The goods cost Troy $30,000. Record Troy's entry for this transaction. Sydney returns $1,400 of the $40,000 of goods to Troy, who receives them the same day and restores them to its inventory. Record Troy's entry for this transaction. 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. Record Troy's entry for this transaction. 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. Record Sydney's entry for this transaction. Sydney pays Troy for the amount owed. Troy receives the cash immediately. Record Sydney's entry for this transaction. Sydney pays $345 cash to Express Shipping for delivery charges on the merchandise. Record Sydney's entry for this transaction. The returned goods had cost Troy $1,050. Record Troy's entry for this transaction. Sydney pays Troy for the amount owed. Troy receives the cash immediately. Record Troy's entry for this transaction. Exercise 4-10 (Static) Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $4,020 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10,n/9, FOB shipping point. The goods cost Troy $3,0. Sydney pays $345 cash to Express Shipping for delivery charges on the merchandise. merchandise. May 12 Sydney returns $1,400 of the $40,e0e of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy \$1,05e. May 20 Sydney pays Troy for the amount owed. Troy receivs the casl 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

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