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

question 19

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.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) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 8,000 & \\
• \hline \text { Accounts receivable } & & 8,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 7,760 & \\
• \hline \text { Accounts receivable } & & 7,760 \\
• \hline
• \end{array}\]

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Definitions:

Exchange Relationship

A social interaction based on reciprocal actions where the benefits given and received are considered.

Equity Norm

A principle based on fairness, where rewards and resources are distributed based on the contributions of individuals.

Individual Rights

Fundamental rights entitled to each person that protect freedoms and ensure fair treatment.

Stereotypes

Widely held but fixed and oversimplified images or ideas of a particular type of person or thing, which can influence social perception and behavior.