BUISENESS MANAGEMENT
MERCHANDISING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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On September 12, Ryan Company sold merchandise in the amount of $7, 200 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4, 700. Ryan uses the periodic inventory system and the net method of accounting for sales. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Ryan makes on September 18 is:
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Cash 7, 200Accounts receivable 7, 200
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Cash 4, 700Accounts receivable 4, 700
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Cash 4, 606Sales discounts 94Credit Accounts receivable 4, 700
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Cash 7, 056Accounts receivable 7, 056
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Cash 7, 056Sales discounts 144Credit Accounts receivable 7, 200
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Explanation:
Detailed explanation-1: -The cost of the items sold is $4, 800.
There is 1 question to complete.