Michelin Jewellers Completed the Following Transactions $$\begin{array} { | l | r | r | } \hline \text { Inventory } & 5000 & \\\hline \text { Cost of sales } & & 5000 \\\hline\end{array}$$

question 24

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.Which of the following journal entries correctly records the Cost of sales?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Inventory } & 5000 & \\
• \hline \text { Cost of sales } & & 5000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Sales revenue } & 5000 & \\
• \hline \text { Cost of sales } & & 5000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of sales } & 5000 & \\
• \hline \text { Accounts receivable } & & 5000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of sales } & 5000 & \\
• \hline \text { Inventory } & & 5000 \\
• \hline
• \end{array}\]

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Definitions:

Pacifier

A rubber, plastic, or silicone nipple given to an infant to suck upon, though it is not attached to a bottle or intended to deliver food.

Pleasurable

Causing a feeling of satisfaction, enjoyment, or pleasure.

Piaget

A Swiss psychologist known for his pioneering work in developmental psychology and his theory of cognitive development in children.

Tertiary Circular Reaction

A stage in Piaget's theory of cognitive development where infants explore their environment and learn through trial and error with repeated actions.