Michelin Jewelers Completed the Following Transactions B) $$\begin{array} { | l | r | r | } \hline \text { Sales revenue } & 5,500 & \\\hline \text { Cost of goods sold } & & 5,500 \\\hline\end{array}$$

question 45

Multiple Choice

Michelin Jewelers completed the following transactions.Michelin Jewelers 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.
-Which of the following journal entries correctly records the Cost of goods sold?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of goods sold } & 5,500 & \\
• \hline \text { Accounts receivable } & & 5,500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Sales revenue } & 5,500 & \\
• \hline \text { Cost of goods sold } & & 5,500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of goods sold } & 5,500 & \\
• \hline \text { Inventory } & & 5,500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Inventory } & 5,500 & \\
• \hline \text { Cost of goods sold } & & 5,500 \\
• \hline
• \end{array}\]

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Definitions:

M2

An indicator of the total money available within an economy that encompasses physical currency, funds in checking accounts, and assets closely resembling cash, like savings accounts and investments in money markets.

Demand Deposits

Bank accounts that allow the holder to withdraw funds without advance notice, often used for day-to-day expenses.

Federal Reserve Bank

One of the 12 regional banks of the Federal Reserve System, each serving a specific geographic area of the United States, involved in banking and monetary policy.

First Bankers

Early financial intermediaries who accepted deposits, facilitated loans, and created ways to transfer wealth across great distances.