Weston Jewelers Uses the Perpetual Inventory System

question 163

Multiple Choice

Weston Jewelers uses the perpetual inventory system.On April 2,Weston sold merchandise with a cost of $5,000 for $10,000 to a customer on account with terms of 2/15,n/30.On April 4,the customer reported damaged goods,and Michelin granted a $2,000 sales allowance.On April 10,Weston received payment from the customer.Calculate the amount of net sales revenue.

• A)$9,840
• B)$10,000
• C)$8,000
• D)$7,840

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Definitions:

Partnership by Estoppel

A legal doctrine where a person acts or is treated as if they are a partner in a business, even though no formal partnership exists, leading to liability.

Written Partnership Agreement

A legal document outlining the terms, responsibilities, and profit-sharing mechanisms among partners in a business.

Legal Obligation to Indemnify

A requirement by law for one party to compensate another for losses or damages that have been incurred.

Co-owners

Individuals or entities who jointly own an asset or property, sharing the rights and responsibilities associated with ownership.