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

May 11	Sydney accepts delivery of $34,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $22,780. Sydney pays $470 cash to Express Shipping for delivery charges on the merchandise.
May 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 cost Troy $938.
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 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.

1.

No	Date	General Journal	Debit	Credit
1	May 11	Merchandise inventoryselected answer correct	34,000selected answer correct
		Accounts payableselected answer correct		34,000selected answer correct
2	May 11	Merchandise inventoryselected answer correct	470selected answer correct
		Cashselected answer correct		470selected answer correct
3	May 12	Accounts payableselected answer correct	1,400selected answer correct
		Merchandise inventoryselected answer correct		1,400selected answer correct
4	May 20	Accounts payableselected answer correct	32,600selected answer correct
		Cashselected answer correct		31,622selected answer correct
		Merchandise inventoryselected answer correct		978