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On September 12, Ryan Company sold merchandise in the amount of $6,200 to Johnson Company, with credit terms of 2/10,n/30. The cost of the items
On September 12, Ryan Company sold merchandise in the amount of $6,200 to Johnson Company, with credit terms of 2/10,n/30. The cost of the items sold is $4,200. 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 $540 and the cost of the merchandise returned is $370. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Ryan makes on September 18 is: Multiple Choice 6,200 Cash Accounts receivable 6,200 5,547) Cash Accounts receivable 5,547 Cash Sales discounts Accounts receivable 5,547 113 5,660 6,076 Cash Accounts receivable 6,076 Cash Sales discounts Accounts receivable 6,076 1241 6,200
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