Michelin Jewellers Completed the Following Transactions

question 56

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 Gross profit?

• A)$4 500
• B)$2 260
• C)$2 760
• D)$4 000

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Definitions:

"Prn"

A medical abbreviation for "pro re nata," meaning "as needed," often used in prescriptions and medical orders.

Pain Perception

The process by which the brain recognizes, interprets, and responds to pain signals sent from the body.

Cultural Expectations

The shared norms and values that dictate behaviors and beliefs within a specific group or society.

Preventing Pain

Strategies and practices aimed at minimizing or avoiding the onset of pain.