On September 12, Ryan Company sold merchandise in the amount of $7200 to Johnson Company, with credit terms of 2.00/10, n/30. The cost of the items sold is $4700. 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.

Accounts payable7200? 
  Merchandise inventory 7200?

B.
Purchases7056? 
  Accounts payable 7056?

C.  
Merchandise inventory4700? 
  Accounts payable 4700?

D.
Purchases7200? 
  Accounts payable 7200?

E.
Merchandise inventory7056? 
  Accounts payable 7056?


Answer: B

Business

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