Michelin Jewellers Completed the Following Transactions B) C) $\begin{array} { | c | r | r | } \hline \text { Cash } & 8,000 & \\\hline \text { Accounts receivable } & & 8,000 \\\hline\end{array}$

question 68

Multiple Choice

Michelin Jewellers completed the following transactions. Michelin Jewellers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. On April 10, Michelin received payment from the customer. Which of the following entries correctly records the cash receipt on Michelin's books?

• A) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 7,760 & \\
• \hline \text { Sales discount } & 240 & \\
• \hline \text { Accounts receivable } & & 8,000 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 8,000 & \\
• \hline \text { Sales discount } & & 240 \\
• \hline \text { Cash } & & 7,760 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 8,000 & \\
• \hline \text { Accounts receivable } & & 8,000 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 7,760 & \\
• \hline \text { Accounts receivable } & & 7,760 \\
• \hline
• \end{array}\)

---

Definitions:

Advertising Restrictions

Regulations or limitations on the manner, extent, or content of advertising for certain products or services.

Performance Quotas

Set targets or benchmarks that employees, departments, or companies aim to achieve within a specific timeframe.

Franchise Agreement

A legal contract between a franchisor and franchisee, outlining the terms and conditions for operating a franchised business, including fees, support, and operational guidelines.

Limited Funds

A situation where there is a scarcity of financial resources available for use.