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[The following information applies to the questions displayed below.) Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts
[The following information applies to the questions displayed below.) Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $49,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $35,000. Sydney pays $340 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,400 of the $49,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,000. 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 net method.) Answer is not complete. General Journal Credit No 1 Date May 11 Debit 35,000 > Merchandise inventory Accounts payable 35,000 2 2 May 11 340 Merchandise inventory Cash 340 3 May 12 Accounts payable Merchandise inventory 1,400 X 1,400 4 May 20 Accounts payable Merchandise inventory Cash
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