On September 12, Ryan Company sold merchandise in the amount of $8600 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5400. 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 $780 and the cost of the merchandise returned is $490. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Ryan makes on September 18 is:
A.
| Cash | 8428? | |
| Accounts receivable | 8428? |
B.
| Cash | 8600? | |
| Accounts receivable | 8600? |
C.
| Cash | 7664? | |
| Accounts receivable | 7664? |
D.
| Cash | 7664? | |
| Sales discounts | 156? | |
| Accounts receivable | 7820? |
E.
| Cash | 8428? | |
| Sales discounts | 172? | |
| Accounts receivable | 8600? |
Answer: C
You might also like to view...
Concerning accounting for warranties, which of the following statements is false?
A) The GAAP approach of accruing warranty expense (and the related liability) in the year of the sale is not an acceptable method for federal income tax purposes. B) The modified cash basis is the most conceptually sound method for financial reporting. C) In accounting for service-type warranties, companies much report warranty expense in the period of sale. D) The modified cash basis recognizes warranty expense when cash is paid for the repairs to merchandise under warranty.
Which of the following statements, regarding the management's discussion and analysis (MD&A) part of the annual report is NOT correct?
A) Investors are not interested in the MD&A because it is written by the company and could present a biased view of the company's financial condition and performance. B) It often contains information that is not found in the financial data. C) It provides forward-looking formation. D) The MD&A is the company's attempt to explain its financial statements and to discuss its performance.
A sketch, no matter how rough, can be _______________
a. difficult to interpret b. placed in the margins c. a valuable tool d. visually pleasing
An advantage of social media monitoring is individuals who may not fill out surveys or agree to focus groups might nevertheless share their experiences with online social networks.
Answer the following statement true (T) or false (F)