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Exercise 4-10 (Algo) Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions May 11 Sydney accepts delivery of $27,000 of merchandise it purchases for resale from Troy: Invoice dated May 11, terus 3/10, n/90, FOB shipping point. The goods cost Trey 518,090 Sydney pays $510 cash to Express Shipping for delivery charges on the merchandise May 12 Sydney returns $1,200 of the $27,000 of goods to Troy, who receives them the same day and restores them to its inventory The returned goods had cost Troy $884. May 30 Sydney pays Troy for the mount owed. They receives the cash imediately. (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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required Required 1 Required 2 Prepare journal entries that Troy Wholesalers (seller) records for these three transactions, No General Journal Credit Date May 11 Debit 27,000 1 Accounts receivable Sales O 27,000 2 May 11 18,090 Cost of goods sold Merchandise inventory O 18,090 3 May 12 1,200 Sales returns and allowances Accounts receivable 1,200 4 May 12 804 Merchandise inventory Cost of goods sold 804 5 May 20 Cash Sales discounts Accounts receivable 25,056 744 O 25 800