90.2K

Verified Solution

Link Copied!

Exercise 4-23A (Algo) Periodic-Recording sales, purchases, shipping, and returns: buyer and seller .O P5 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. lay 11 Sydney accepts delivery of $22,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $14,740. Sydney pays $660 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $2,600 of the $22,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,742. 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. Assume that both buyer and seller use a periodic inventory system and the gross method. I. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. View transaction list X 1 Sydney accepts delivery of $22,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $14,740. > resale bint. The 2 Record the transportation cost paid to express shipping. 3 Sydney returns $2,600 of the $22,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,742. Credit 4 Sydney pays Troy for the amount owed. Troy receives the cash immediately. Note : = journal entry has been entered Record entry Clear entry View general journal Required 1 Required 2 Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. View transaction list x 1 Sydney accepts delivery of $22,000 of merchandise it purchases for resale from Troy: invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. > 2 Sydney returns $2,600 of the $22,000 of goods to Troy. resale pping 3 Sydney mails a check to Troy Corporation for the amount owed. Troy receives the cash immediately. Credit Note : journal entry has been entered Record entry Clear entry View general journal

Answer & Explanation Solved by verified expert

See Answer