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On May 11 Sydney Co accepts delivery of $23500 of merchandise it purchases for resale from Troy Corporation With the merchandise is an invoice dated May

On May 11, Sydney Co. accepts delivery of $23,500 of merchandise it purchases for resale from Troy Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Troy $15,745. When the goods are delivered, Sydney pays $305 to Express Shipping for delivery charges on the merchandise. On May 12, Sydney returns $1,220 of goods to Troy, who receives them one day later and restores them to inventory. The returned goods had cost Troy $817. On May 20, Sydney mails a check to Troy Corporation for the amount owed. Troy receives it the following day. (Both Sydney and Troy use a perpetual inventory system.)

Date General Journal Debit Credit
May 11 Merchandise inventory 23,500
Accounts payable 23,500
May 11 Merchandise inventory 305
Cash 305
May 12 Accounts payable 1,220
Merchandise inventory 1,220
May 20 Accounts payable 22,280
Cash 21,612
Merchandise inventory 668

2.

Prepare journal entries that Troy Corporation records for these transactions.

   

May 23 2020 View more View Less

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