Michelin Jewellers Completed the Following Transactions

question 20

Multiple Choice

Michelin Jewellers completed the following transactions. Michelin Jewellers uses the perpetual inventory system. On 2 April, Michelin sold $9 900 of inventory, including GST, to a customer on credit with terms of 3/15, n/30. Michelin's cost of the inventory sold was $5 000, net of GST. On 4 April, the customer reported damaged goods and Michelin granted a $1 100 sales allowance, including GST. On 10 April, Michelin received payment from the customer. If this were the only transaction for the period, what amount would be shown on the income statement for Net sales revenue?

• A)$8 760
• B)$8 000
• C)$9 000
• D)$7 760

---

Definitions:

Third Wave

A term used in different contexts; in sociology, it refers to the third phase of the feminist movement; in technology, it refers to the third era of computing and digital innovation.

Sustainability

Practices and strategies for maintaining ecological balance by avoiding depletion of natural resources.

Balance

An equilibrial state where different elements are in the correct proportions or positions, often used figuratively to denote a well-proportioned mix of work, life, and activities.

Incremental Sustainable Change

Gradual and continuous modifications implemented in an organization or system that aim to improve sustainability without disrupting existing processes significantly.