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On September 12, Ryan Company sold merchandise in the amount of $8,600 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 $8,600 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5,400. 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 Accounts receivable 8,600 8,600 5,292 Cash Sales discounts Accounts receivable 108 5,400 Cash 5,4001 Accounts receivable 5,400 8,428 Cash Accounts receivable 8,428 8,420 Cash Sales discounts Accounts receivable 8,600

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