Answer questions $1-2$

Sydney Retailing $($buyer$)$ and Troy Wholesalers $($seller$)$ enter into the following transactions$\mathrm{.}1$

May $11$ Sydney accepts delivery of $$27,500$ of merchandise it purchases for resale from Troy: invoice dated May $11,$ terms

$\frac{3}{10},$ n$/90,$ F$0$B shipping point. The goods cost Troy $$18,425.$ Sydney pays $$450$ cash to Express Shipping for

delivery charges on the merchandise.

May $12$ Sydney returns $$1,400$ of the $$27,500$ of goods to Troy, who receives them the same day and restores them to its

inventory. The returned goods had cost Troy $$938.$

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.$)$

$1.$ 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.