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

2) (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

2) (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