TB MC Qu. 176 (Algo) On September 12, Ryan Company... 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 perpetual 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: Multiple Choice Credit Account Title Merchandise Inventory Cash Debit 7,566 7,566 Account Title Accounts Payable Merchandise Inventory Cash Debit Credit 5,000 150 4,850 Credit Account Title Accounts Payable Debit 7,800 BALL