check my work 4 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11 Syđney accepts delivery of \( \$ 25,000 \) of merchandise it purchases for resale from Troy: invoice dated May 11 , terms \( 3 / 10 \), \( n / 90 \), FOB shipping point. The goods cost Troy \( \$ 16,750 \). Sydney pays \( \$ 360 \) cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns \( \$ 1,400 \) of the \( \$ 25,000 \) 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. ebook Assume that both buyer and seller use a periodic inventory system and the gross method. 4. Prepare joumal entries that Sydney Retating (buyer) records for these three transactions. 2. Prepare joumal entries that Troy Wholesalers (seller) records for these three transactions. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries that Sydney Retalling (buyer) records for these three transactions. View transaction list

To prepare the journal entries for Sydney Retailing (buyer) for the transactions with Troy Wholesalers (seller), we will follow the details provided in the problem step by step. ### Transaction 1: Purchase of Merchandise **Date:** May 11 **Details:** Sydney accepts delivery of merchandise worth \( \$ 25,000 \) with delivery charges of \( \$ 360 \). **Journal Entry:** 1. **Debit Merchandise Inventory** for the purchase amount. 2. **Debit Delivery Expense** for the shipping charges. 3. **Credit Accounts Payable** for the total amount owed to Troy. **Entry:** ``` May 11 Merchandise Inventory 25,000 Delivery Expense 360 Accounts Payable 25,360 ``` ### Transaction 2: Return of Merchandise **Date:** May 12 **Details:** Sydney returns \( \$ 1,400 \) of merchandise to Troy. **Journal Entry:** 1. **Debit Accounts Payable** for the amount of the return. 2. **Credit Merchandise Inventory** for the value of the returned goods. **Entry:** ``` May 12 Accounts Payable 1,400 Merchandise Inventory 1,400 ``` ### Transaction 3: Payment to Troy **Date:** May 20 **Details:** Sydney pays Troy for the amount owed after considering the return and the discount. **Calculation of Amount Owed:** - Initial amount owed: \( \$ 25,000 \) - Less return: \( \$ 1,400 \) - Amount after return: \( \$ 23,600 \) - Discount (3% of \( \$ 23,600 \)): \( 0.03 \times 23,600 = 708 \) - Amount after discount: \( 23,600 - 708 = 22,892 \) **Journal Entry:** 1. **Debit Accounts Payable** for the amount owed after the return. 2. **Credit Cash** for the payment made. **Entry:** ``` May 20 Accounts Payable 23,600 Cash 22,892 ``` ### Summary of Journal Entries for Sydney Retailing 1. **May 11:** ``` Merchandise Inventory 25,000 Delivery Expense 360 Accounts Payable 25,360 ``` 2. **May 12:** ``` Accounts Payable 1,400 Merchandise Inventory 1,400 ``` 3. **May 20:** ``` Accounts Payable 23,600 Cash 22,892 ``` Now, let's prepare the journal entries for Troy Wholesalers (seller). ### Required 2: Journal Entries for Troy Wholesalers (Seller) ### Transaction 1: Sale of Merchandise **Date:** May 11 **Details:** Troy sells merchandise worth \( \$ 25,000 \) to Sydney. **Journal Entry:** 1. **Debit Accounts Receivable** for the sale amount. 2. **Credit Sales Revenue** for the sale amount. 3. **Debit Cost of Goods Sold** for the cost of the merchandise. 4. **Credit Merchandise Inventory** for the cost of the merchandise. **Entry:** ``` May 11 Accounts Receivable 25,000 Sales Revenue 25,000 Cost of Goods Sold 16,750 Merchandise Inventory 16,750 ``` ### Transaction 2: Receipt of Returned Merchandise **Date:** May 12 **Details:** Troy receives \( \$ 1,400 \) of merchandise back from Sydney. **Journal Entry:** 1. **Debit Merchandise Inventory** for the value of the returned goods. 2. **Credit Accounts Receivable** for the amount of the return. **Entry:** ``` May 12 Merchandise Inventory 1,400 Accounts Receivable 1,400 ``` ### Transaction 3: Receipt of Payment **Date:** May 20 **Details:** Troy receives payment from Sydney. **Journal Entry:** 1. **Debit Cash** for the amount received. 2. **Credit Accounts Receivable** for the amount owed after the return. **Entry:** ``` May 20 Cash 22,892 Accounts Receivable 22,892 ``` ### Summary of Journal Entries for Troy Wholesalers 1. **May 11:** ``` Accounts Receivable 25,000 Sales Revenue 25,000 Cost of Goods Sold 16,750 Merchandise Inventory 16,750 ``` 2. **May 12:** ``` Merchandise Inventory 1,400 Accounts Receivable 1,400 ``` 3. **May 20:** ``` Cash 22,892 Accounts Receivable 22,892 ``` These entries reflect the transactions accurately for both Sydney Retailing and Troy Wholesalers. If you have any further questions or need additional assistance, feel free to ask!