Question

Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these t View transaction list XE 1 Sydney accepts delivery of $36,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $24,455. 2 Sydney pays $500 cash to Express Shipping for delivery charges on the merchandise. 3 Sydney returns $1,200 of the $36,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $804. 4 Sydney pays Troy for the amount owed. Troy receives the cash immediately.

Answer 1

Credit Date Debit Mayss Sydney Retailing (buyer) General Journal Merchandise inventory Accounts payable (to record purchases inventory) $ 36,500 $ 36, SOD Mayll $ 500 Merchandise inventory Cash (to record delivery charges) $ 500 May 12 $ 1,200 Accounts payable Merchandise inventory (To record inventory retum $ 1,200 $ 35, 300 May 20 payable Accounts Cash $ 34241 $ 1,059 Merchandise inventory (To record paid cash) May 20 Calculation : May 20 Alcounts payable = (436,500 - $1,200) =$35,300 Merchandise inventory (Purchases - Purchases return) x Discount = ( $ 36,500 - $1,200) * 3°). $ 35,300 X 3'). $ 1,059

credit Debit Date Troy wholesalers (seller) General Journal Accounts receivable sales (To record sales) & 36,500 May 11 & 36,500 Mayll $ 294,455 Cost of goods sold Merchandise inventory record cost of goods sold) & 24, 455 C (TO May 12 sales return and allowance $ 1.200 Alounts receivable (to record sales return fallowance) $ 1,200 $ 804 $ 804 Mayiz Merchandise inventory cost of goods sold (To record cost of returned goods) $ 35,300 May 20 Cash $ 34,241 sales discounts $ 1,059 Accounts receivable (to record cash received) Calculation, Sales discount (sales - sales return) & Discount ($ 36,500-$1,200) x 3% $ 35, 300 X 3% $ 1,059 11 11 11 11