Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions

Prepare the appropriate journal entries for Macy Co. to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system, and purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Date	General Journal	Debit	Credit
1	May 03	No journal entry requiredselected answer correct	not attempted	not attempted
2	May 05	Merchandise inventoryselected answer correct	7,500selected answer correct	not attempted
		Accounts payableselected answer correct	not attempted	7,500selected answer correct
3	May 07	Accounts payableselected answer correct	750selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	750selected answer correct
4	May 08	Accounts payableselected answer correct	350selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	350selected answer correct
5	May 15	Accounts payableselected answer correct	6,400selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	128selected answer correct
		Cashselected answer correct	not attempted	6,272selected answer correct

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9.

Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
  

May		11		Sydney accepts delivery of $23,500 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $15,745. Sydney pays $650 cash to Express Shipping for delivery charges on the merchandise.
		12		Sydney returns $1,400 of the $23,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $938.
		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 journal entries that Troy Wholesalers (seller) records for these three transactions.

Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.

No	Date	General Journal	Debit	Credit
1	May 11	Merchandise inventoryselected answer correct	23,500selected answer correct	not attempted
		Accounts payableselected answer correct	not attempted	23,500selected answer correct
2	May 11	Merchandise inventoryselected answer correct	650selected answer correct	not attempted
		Cashselected answer correct	not attempted	650selected answer correct
3	May 12	Accounts payableselected answer correct	1,400selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	1,400selected answer correct
4	May 20	Accounts payable 23500-1400selected answer correct	22,100selected answer correct	not attempted
		Merchandise inventory 3%selected answer correct	not attempted	663selected answer correct
		Cashselected answer correct	not attempted	21,437selected answer correct

Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.

No	Date	General Journal	Debit	Credit
1	May 11	Accounts receivableselected answer correct	23,500selected answer correct	not attempted
		Salesselected answer correct	not attempted	23,500selected answer correct
2	May 11	Cost of goods soldselected answer correct	15,745selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	15,745selected answer correct
3	May 12	Sales returns and allowancesselected answer correct	1,400selected answer correct	not attempted
		Accounts receivableselected answer correct	not attempted	1,400selected answer correct
4	May 12	Merchandise inventoryselected answer correct	938selected answer correct	not attempted
		Cost of goods soldselected answer correct	not attempted	938selected answer correct
5	May 20	Cashselected answer correct	21,437selected answer correct	not attempted
		Sales discountsselected answer correct	663selected answer correct	not attempted
		Accounts receivableselected answer correct	not attempted	22,100