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Exercise $4-10($Algo$)$ Recording sales, purchases, shipping, and returns$-$buyer and seller LO P$1,$ P$2$

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

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May $11$ Sydney accepts delivery of $$39,000$ of merchandise it purchases for resale from Troy: invoice dated May $11,$ terms $\frac{3}{10},\frac{n}{90},$ FOB shipping point. The goods cost Troy $$26,130.$ Sydney pays $$335$ cash to Express Shipping for delivery charges on the merchandise.

May $12$ Sydney returns $$1,100$ of the $$39,000$ of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $$737.$

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 gross method.$)$

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

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

Complete this question by entering your answers in the tabs below.

Prepare journal entries that Sydney Retalling $($buyer$)$ records for these three transactions.

Journal entry worksheet

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Sydney accepts delivery of $$39,000$ of merchandise it purchases for resale from Troy: invoice dated May $11,$ terms $\frac{3}{10},\frac{n}{90},$ FOB shipping point. The goods cost Troy $$26,130.$ Record Sydney's entry for this transaction.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$May $11,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$