Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $29,500 of merchandise it purchases for resale

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

May 11 Sydney accepts delivery of $29,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $19,765. Sydney pays $395 cash to Express Shipping for delivery charges on the merchandise.
12 Sydney returns $1,300 of the $29,500 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.

(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

image text in transcribed2) (May 11) Sydney pays $395 cash to Express Shipping for delivery charges on the merchandise.

3) (May 12) Sydney returns $1,300 of the $29,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871.

4) (May 20) Sydney pays Troy for the amount owed. Troy receives the cash immediately.

Options for the General Journal for the upper table 1 through 5

  • Accounts payable
  • Accounts receivable
  • Accumulated depreciation
  • Bond premium
  • Bonds payable
  • Building
  • Cash
  • Common stock
  • Cost of goods sold
  • Depreciation expense
  • Discount on bonds payable
  • Dividends declared
  • Finance costs
  • Goodwill
  • Interest expense
  • Interest income
  • Interest payable
  • Interest receivable
  • Land
  • Merchandise inventory
  • Miscellaneous expenses
  • Other expenses
  • Sales
  • Sales discounts
  • Sales returns and allowances

image text in transcribed2) (May 11) Record the cost of goods sold.

3) (May 12) Record the sales return

4) (May 12) Record the cost of sales return.

5) (May 20) Record the cash collected for credit sales.

Options for the second table 1 through 5 (General Jornal)

  • Accounts payable
  • Accounts receivable
  • Accumulated depreciation
  • Bond premium
  • Bonds payable
  • Building
  • Cash
  • Common stock
  • Cost of goods sold
  • Depreciation expense
  • Discount on bonds payable
  • Dividends declared
  • Finance costs
  • Goodwill
  • Interest expense
  • Interest income
  • Interest payable
  • Interest receivable
  • Land
  • Merchandise inventory
  • Miscellaneous expenses
  • Other expenses
  • Sales
  • Sales discounts
  • Sales returns and allowances

Journal entry worksheet 2 3 4 Sydney accepts delivery of $29,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $19,765. Note: Enter debits before credits. General Journal Debit Credit Date May 11 Journal entry worksheet 2 3 4 5 Record the merchandise sold on account. Note: Enter debits before credits. Date General Journal Debit Credit May 11

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Assurance And Risk

Authors: W Robert Knechel, Steven E Salterio

4th Edition

1315531720, 9781315531724

More Books

Students also viewed these Accounting questions

Question

be able to calculate correlations among variables.

Answered: 1 week ago

Question

clarify and articulate your research methodology;

Answered: 1 week ago

Question

consider how to build on prior learning.

Answered: 1 week ago