Sydney Retailing (Buyer) and Troy Wholesalers (Seller) enter into following transactions.

1. prepare journal entries that sydney retailing records for these transactions

May 11

sydney accepta delivery of 48,000 of merchandise it purchases for resale from troy: invoice dated May 11, terms 3/10 , n/90 , FOB shipping point.

May 11

the goods cost troy $30,000. sydney pays $400 cash to express shipping for delivery charges on the merchandise

May 12

Sydney returns $2,000 of the $48,000 of goods to troy, who recieves them the same day and restores them to its inventory. the returned goods had coat troy $1,250.

May 20

sydney pays troy for the amount owed. troy recieves the cash immediately.