Question

On September 12, Ryan Company sold merchandise in the amount of $5,800 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ryan uses the periodic inventory system and the net method of accounting for sales. The journal entry or entries that Ryan will make on September 12 is (are):a. 5,684 Purchases

Cash 5,684

b. 4,000 Accounts payable

Merchandise inventory 80

Cash 3,920

c. 5,800 Accounts payable

Purchases discounts 116

Cash 5,684

d. 5,684 Accounts payable

Cash 5,684

e. 5,684 Cash

116 Purchases discounts

Accounts payable 5,800

Answer 1

Answer:

The journal entry which is to be recorded is shown below:

Explanation:

The journal entry which is to be posted is as follows:

On September 12

Sales A/c.......................................Dr   $5,800

     Accounts Receivable A/c........Cr   $5,800

Being record the sales made on the date

As the sale of goods incurred on September 12, so the sales account will be debited and the cash is not paid on that date, therefore, the accounts receivable is credited with the amount of goods sold that is $5,800.

NOTE: The correct entry is this and in the options the correct entry is not stated as only the sale is incurred on this date.