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. Johnson uses the periodic inventory system and the net method of accounting for purchases. The journal entry that Johnson will make on September 12 is:
A.
| Merchandise inventory | 5,800 | |
| Accounts payable | 5,800 |
B.
| Accounts payable | 4,000 | |
| Merchandise inventory | 4,000 |
C.
| Purchases | 5,800 | |
| Accounts payable | 5,800 |
D.
| Merchandise inventory | 5,684 | |
| Accounts payable | 5,684 |
E.
| Purchases | 5,684 | |
| Accounts payable | 5,684 |
Answer: E
You might also like to view...
Which item is not a suggested tip for enhancing your ethical sensitivity?
A. engage in active listening and role playing B. talk to all your friends about the ethical dilemma C. pay attention to your feelings D. crank up the moral intensity
Explain how assets and liabilities should be classified on the balance sheet. What are the problems with this classification method?
What will be an ideal response?
An unplanned business district location has no adjacent retailers with which stores can share traffic
Indicate whether the statement is true or false
Maple Corp. had net sales of $201,550 for the year ended December 31, 2017. Its beginning and ending total assets were $88,200 and $112,500, respectively. Determine Maple's asset turnover ratio for the year ended December 31, 2017
A) 0.5 times B) 2.29 times C) 1.11 times D) 2.01 times