Help Save & Exit On September 12, Ryan Company sold merchandise in the amount of $7,800 to Johnson Company, with credit terms of 3/10, n/30. The cost of the items sold is $5,000. Johnson uses the periodic inventory system and the net method of accounting for purchases. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Johnson makes on September 18 is: 7,800 Accounts payable Purchases discounts Cash 234 7,566 Purchases Cash 7,566 7,566 5,000 Accounts payable Merchandise inventory Cash 150 4,850 Accounts payable Cash 7,566 7,566 Cash Purchases discounts Accounts payable 7,566 234 7,800