Question

Check my work Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $23,589 of merchandise it purchases for resale from Troy: invoice dated May 11, teras 3/10, n/90, FOB shipping point. The goods cost Troy $15,745. Sydney pays $355 cash to Express Shipping for delivery charges on the merchandise 12 Sydney returns $1,200 of the $23,5ee of goods to Troy, who receives then the same day and restores then to its inventory. The returned goods had cost Troy $804. 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. at ht Complete this question by entering your answers in the tabs below. ) ences Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet 1 2 3 4 Sydney accepts delivery of $23,500 of merchandise it purchases for resale from Troy: involce dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $15,745. Note: Enter debits before credits. Date General Journal Debit Credit May 11 Record entry Clear entry View general journal

Answer 1

1. General Journal

Date	Account Title and Explanation	Debit	Credit
May.11	Merchandise Inventory	$23,500
	Accounts Payable		$23,500
May.11	Merchandise Inventory	$355
	Cash		$355
May.12	Accounts Payable	$1,200
	Merchandise Inventory		$1,200
May.20	Accounts Payable ($23,500-$1,200)	$22,300
	Merchandise Inventory (3%)		$669
	Cash		$21,631

2. General Journal

Date	Account Title and Explanation	Debit	Credit
May.11	Accounts Receivable	$23,500
	Sales		$23,500
May.11	Cost of Goods Sold	$15,745
	Merchandise Inventory		$15,745
May.12	Sales Return and Allowance	$1,200
	Accounts Receivable		$1,200
May.12	Merchandise Inventory	$804
	Cost of Goods Sold		$804
May.20	Cash	$21,631
	Sales Discounts	$669
	Accounts Receivable		$22,300