Business, 17.07.2020 21:01 mecennabosaaen

Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Sydney accepts delivery of $39,500 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $26,465. Sydney pays $470 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,100 of the $39,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $737. 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 g g

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Answer from: HurpsGaming1

1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.

May 11 Sydney accepts delivery of $39,500 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $26,465. Sydney pays $470 cash to Express Shipping for delivery charges on the merchandise.

May 11, merchandise purchased on account, terms 3/10, n/90

Dr Merchandise inventory 39,500

Cr Accounts payable 39,500

May 11, freight costs

Dr Merchandise inventory 470

Cr Cash 470

12 Sydney returns $1,100 of the $39,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $737.

May 12, merchandise is returned

Dr Accounts payable 1,100

Cr Merchandise inventory 1,100

20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.

May 20, invoice is paid

Dr Accounts payable 38,400

Cr Cash 37,248

Cr Purchase discounts 1,152

2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.

May 11, merchandise sold on account, terms 3/10, n/90

Dr Accounts receivable 39,500

Cr Sales revenue 39,500

Dr Cost of goods sold 26,465

Cr Merchandise inventory 26,465

12 Sydney returns $1,100 of the $39,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $737.

May 12, merchandise is returned

Dr Sales revenue 1,100

Cr Accounts receivable 1,100

Dr Merchandise inventory 737

Cr Accounts receivable 737

20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.

May 20, invoice is paid

Dr Cash 37,248

Dr Sales discounts 1,152

Cr Accounts receivable 38,400

Answer from: Quest

answer; i believe that the correct answer is ( owners investment)

Answer from: Quest

d. all of the above are true.

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Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11...