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

May		11		Sydney accepts delivery of $22,000 of merchandise it purchases for resale from Troy: invoice dated May 11 terms 3/10, n/90 FOB shipping point. The goods cost Troy $14,740. Sydney pays $320 cash to Express Shipping for delivery charges on the merchandise.
		12		Sydney returns $1,300 of the $22,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871.
		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 records for these transactions. 2. Prepare journal entries that Troy Wholesalers records for these transactions.