On May 11, Sydney Co. accepts delivery of $29,500 of merchandise it purchases for resale from Troy Corporation.

On May 11, Sydney Co. accepts delivery of $29,500 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 $19,765. When the goods are delivered, Sydney pays $675 to Express Shipping for delivery charges on the merchandise. On May 12, Sydney returns $2,700 of goods to Troy, who receives them one day later and restores them to inventory. The returned goods had cost Troy $1,809. 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.)

1.	Prepare journal entries that Sydney Co. records for these transactions. (Round your final answers to nearest whole dollar.) Explanation: 1. May 20: Paid balance within the 3% discount period ($26,800 × 0.03) = $804.