Respuesta :
Answer: please see explanation column for answers
Explanation:
A) Journal entry for Sydney retailing buyer
i)To record purchase of inventory on account
Date Account titles Debit Credit
May 11 Accounts Payable $40,000
Merchandise Inventory $40,000
ii)To record shipping expense paid
Date Account titles Debit Credit
May 11
Merchandise Inventory $ 345
Cash $ 345
iii) To record goods returned to seller
Date Account titles Debit Credit
May 12 Accounts Payable $1,400
Merchandise Inventory $1,400
iv To record payment on account.
Date Account titles Debit Credit
May 20 Accounts Payable $38,600
Merchandise Inventory $1,158
Cash $37,442
Calculation:
Accounts payable= Purchases− Purchase return
=$40,000−$1,400
=$38,600
Discount=Accounts payable X 3%
=$38,600×0.03
=$1,158
B) Journal entry for Troy - Seller
i)To record sales of goods on account
Date Account titles Debit Credit
May 11 Accounts receivable $40,000
Sales Revenue $40,000
ii) To record cost of goods sold
Date Account titles Debit Credit
May 11 Cost of goods sold $30,000
Merchandise Inventory $30,000
III) To record sales return
Date Account titles Debit Credit
May 12 Sales returns and allowance $1,400
Account receivable $1,400
iv) To record cost of goods sold reversed for sales return
Date Account titles Debit Credit
May 12 Merchandise Inventory $1,050.
Cost of goods sold $1,050.
v) To record cash received for goods sold.
Date Account titles Debit Credit
May 20 Cash $38,600
Sales discount $1,158
Account receivables $37,442
Calculation:
Accounts receivables= sales− sales return
=$40,000−$1,400
=$38,600
Discount=receivables X 3%
=$38,600×0.03
=$1,158
