On May 11, Sydney Co. accepts delivery of $25,000 of merchandise it purchases for resale from Troy Corporation. With the merchandise is n invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Troy $17,085. When the goods are delivered, Sydney pays $390 to Express Shipping for delivery charges on the merchandise. On May 12, Sydney returns $1560 of goods to Troy, who recieves them one day later and restores them to inventory. The returned goods had cost Troy $1,045. On May 20, Sydney mails a check to Troy Corporation for the amount owed. Troy receievs it the following day. (Both Sydney and Troy use a perpetual inventory system.)
1. Prepare journal entries that Sydney Co. records for these transactions.
2. Prepare journal entries that Troy Corporation records for these transactions.
-Record the merchandise sold on account.
-Record the cost of goods sold.
-Record the sales return.
-Cost of sales return
-the cash collected for credit sale