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On September 12, Ryan Company sold merchandise in the amount of $6,800 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 $6,800 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. 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 $600 and the cost of the merchandise returned is $400. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Ryan makes on September 18 is:
Multiple Choice
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Cash 6,800 Accounts receivable 6,800 -
Cash 6,664 Sales discounts 136 Accounts receivable 6,800 -
Cash 6,664 Accounts receivable 6,664 -
Cash 6,076 Sales discounts 124 Accounts receivable 6,200 -
Cash 6,076 Accounts receivable 6,076
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