Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 On September 14, Johnson returns some of the merchandise. The selling price of the merchandise is $640 and the cost of the merchandise returned is $420. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Ryan makes on September 18 is: Multiple Choice 7,200 Cash Accounts receivable 7,200 6,429 Cash Accounts receivable 6,429 6,429 Cash Accounts receivable 6,429 6,429 Cash Sales discounts Accounts receivable 131 6,560 7,056 Cash Accounts receivable 7,056 7,056 144 Cash Sales discounts Accounts receivable 7,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started