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. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Ryan makes on September 18 is:
A.
| Cash | 3,920 | |
| Sales discounts | 80 | |
| Accounts receivable | 4,000 |
B.
| Cash | 5,800 | |
| Accounts receivable | 5,800 |
C.
| Cash | 5,684 | |
| Sales discounts | 116 | |
| Accounts receivable | 5,800 |
D.
| Cash | 4,000 | |
| Accounts receivable | 4,000 |
E.
| Cash | 5,684 | |
| Accounts receivable | 5,684 |
Answer: E
You might also like to view...
One of the biggest inhibitors to developing effective interpersonal skills is to have a boss you cannot get along with
Indicate whether the statement is true or false.
Variable manufacturing overhead costs are treated as product costs under both absorption and variable costing.
Answer the following statement true (T) or false (F)
Companies like Southwest Airlines and Saturn attribute a great deal of their success to their strong corporate cultures, which is inaccurate. In reality, research has determined that, over time, corporate culture has only a marginal influence on firm performance.
Answer the following statement true (T) or false (F)
Actual charitable contributions made by Mullins Corporation were $75,000. What are the federal income tax due and the personal holding company (PHC) tax liability? Discuss the methods (if any) by which payment of the PHC tax can be avoided.
Dividends (from 25%-owned domestic corporation) 200,000 Interest 150,000 Gross income $540,000 Minus: general and administrative expenses ( 40,000) Minus: salaries ( 30,000) "Adjusted" taxable income $470,000 Minus: charitable contributions ( 47,000) Taxable income before special deductions $423,000 Minus: dividends-received deduction (130,000) Taxable income $293,000