Exercise $5-28$C $($Algo$)$ Net method: Recording sales, purchases, shipping, and returns$$buyer and seller LO P$7$

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

May $11-$ Sydney accepts delivery of $$45,000$ of merchandise it purchases for resale from Troy: invoice dated May $11,$ terms $3/10,$ n$/90,$ FOB shipping point. The goods cost Troy $$33,000.$ Sydney pays $$320$ cash to Express Shipping for delivery charges on the merchandise.

May $12-$ Sydney returns $$1,200$ of the $$45,000$ of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $$880.$

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 net method.$)$

Exercise $5-28$C $($Algo$)$ Part $1$ Buyer

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

Exercise $5-28$C $($Algo$)$ Part $2$ Seller

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