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 $500 and the cost of the merchandise returned is $350.Johnson pays the invoice on September 18,and takes the appropriate discount.The journal entry that Ryan makes on September 18 is:

A)
B)
C)
D)
E)

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of all inventory is performed at specific intervals to determine the level of inventory and the cost of goods sold.

Net Method

An accounting method that records purchases or sales of goods and services after deducting any discounts, returning the net amount.

Credit Terms

The payment conditions set by a seller for the buyer, including the period allowed for payment and any cash discount for early payment.