Answer:
Sydney Retailing purchased $38,000 worth of merchandise from Troy Wholesalers. They paid $530 in cash for delivery charges. Sydney later returned $2,100 worth of goods to Troy. On May 20, Sydney paid the amount owed to Troy in cash.
Explanation:
May 11: Sydney accepts delivery of $38,000 of merchandise from Troy. The invoice is dated May 11, and the terms are 3/10, n/90, FOB shipping point. This means that Sydney has a discount of 3% if payment is made within 10 days. The ownership of the goods transfers to Sydney once they leave the shipping point (FOB shipping point).
Sydney pays $530 in cash to Express Shipping for the delivery charges on the merchandise. This payment is unrelated to Troy and is made directly to the shipping company.
May 12: Sydney returns $2,100 worth of goods to Troy. Troy receives the returned goods on the same day and restores them to its inventory. These returned goods had cost Troy $1,407.
May 20: Sydney pays the amount owed to Troy in cash. Troy receives the cash immediately.
Based on the information provided, we can summarize the transactions as follows:
Sydney purchased $38,000 worth of merchandise from Troy.
Sydney paid $530 in cash to Express Shipping for delivery charges.
Sydney returned $2,100 worth of goods to Troy.
Sydney owed an amount to Troy, which was paid in cash on May 20.
Please note that the discount for early payment (3/10) is not mentioned in the information provided, so it is assumed that Sydney did not take advantage of the discount.