Exercise 4-7 Recording sales, purchases, shipping, and returns-buyer and seller
ID: 2510969 • Letter: E
Question
Exercise 4-7 Recording sales, purchases, shipping, and returns-buyer and seller LO PI, P2 Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions May 11 Sydney accepts delivery of $37,000 of merchandise it purchases for resale from Troy iInvoice dated May 11;: terms 3/10, n/90, FOB shipping point. The goods cost Troy $24,790. Sydney pays $370 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney retuns $1,300 of the $37,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. 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 joumal entries that Troy Wholesalers (seller) records for these three transactions Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. Journal entry worksheet Sydney accepts delivery of $37,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $24,790. Note: Enter debits before credts, Date General Journal Debit Credit May 11 View general journal Required 2 tpx?lodo-c15SinglePrintView&singleQuestionNo; 4.&postSubmissionView; 132527073436701498wid-132527073741720938tExplanation / Answer
In the Books of Sydney Retailing Journal Entries: Date Accounts title and explanations Debit $ Credit $ 11-May Inventory Dr. 37000 Accounts payable-Troy 37000 11-May Inventory Account Dr. 370 Cash 370 12-May Accounts payable-Troy Dr. 1300 Inventory Account 1300 20-May Accounts payable-Troy Dr. 35700 Inventory Account (35700*3%) 1071 Cash Account 34629 In the Books of Troy Journal Entries: Date Accounts title and explanations Debit $ Credit $ 11-May Accounts receivable-Sydney Retailing Dr. 37000 Sales revenue 37000 11-May Cost of Goods sold Dr. 24790 Inventory 24790 12-May Sale return Account Dr. 1300 Accounts receivable-Sydney Retailing 1300 12-May Inventory Account Dr. 871 Cost of Goods sold 871 20-May Cash Account 34629 Sales discount and alowance Dr. 1071 Accounts receivable-Ssydney Retailing 35700
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