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Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney aceepta delivery of $34,000 of merchandise it purchases for resale

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Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney aceepta delivery of $34,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, 1/90, TOB shipping point. The goods cont Troy $22,780. Sydney pays $340 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,400 of the $34,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had coat Troy $938. 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. Assume that both buyer and seller use a periodic 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. No Date General Journal Debit Credit 1 May 11 34,000 Merchandise inventory Accounts payable 34,000 X 2 May 11 340 Merchandise inventory Cash 340 3 May 12 > 1,400 Accounts payable Merchandise inventory 1,400 4 May 20 32,600 Accounts payable Merchandise inventory Cash 978 31,622 Required 1 Required 2 Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. Debit Credit No Date May 11 1 34,000 General Journal Accounts receivable Sales Cost of goods sold Merchandise inventory 34,000 22,780 22,780 2 > May 12 1,400 1,400 Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 938 > 938 3 May 20 Cash Sales discounts Accounts receivable os 31,622 978 32,600

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