Exercise $5-24$A $($Static$)$ Periodic: Recording sales, purchases, shipping, and returns: buyer and seller LO P$5$

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

May $11$ Sydney accepts delivery of $$40,000$ of merchandise it purchases for resale from Troy: invoice dated May $11,$ terms $\frac{3}{10},\frac{n}{90},$ FOB shipping point. The goods cost Troy $$30,000.$ Sydney pays $$345$ cash to Express Shipping for delivery charges on the merchandise.

May $12$ Sydney returns $$1,400$ of the $$40,600$ of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $$1,050.$

May $20$ 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.

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

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