Sydney Retailing (buyer). No: Credit Date General Journal Debt $ 26,000 1. May 1 Merchandise inventory Accounts payable (to track purchases merchandis $ 26,000. 2 May 11 and 520 520 $ Merchandise inventory Cash (to track cash paid for delivery cost) $ 1,300 May 12 Accounts payable Merchandise inventory. (To record returns of good) & 1,300 May 20 Accounts payable $ 24,700 Inventory Merchandise inventory $ 741 Cash $ 23,959 Calculation: May 20, All ornts payable and 26,000 $ 1,300 $ 24,700 Early Payment Discount = ($ 26,000-$1,300) X31. $ 24700 X 30% $74)

Credit Troy Wholesalers (selles). No Date General Journal 1. May! Accounts receivable Sales (To record allounts receivable) Debit $ 26,000 $ 26,000 2 may !! $ 17,420 Cost to goods sold. Merchandise inventory (To track cost of goods sold). $ 17,420 and 1.300 May 12 sales retvans, allowance Allounts receivables (to record sales fallowance) $1.300 $871 May 12 Merchandise inventory Cost to sell goods (to nelord return goods cost) $871 24,700 5. maya lash and 23,959 sales discounts $ 941 Accounts receivables (to record sale discount) Calculation: Accounts receivables $ 26,000 $ 1,300 $ 24,700 Sales discounts – ($ 26,000 $11,300) X 3. $ 24,700 X 3.3% $ 941