Michelin Jewelers Completed the Following Transactions

question 80

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.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) $9,000
• C) $8,000
• D) $7,760

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Definitions:

Common Law

A legal system based on custom, court rulings, and past precedents rather than written laws enacted by a legislature.

Sued for Malpractice

The legal action taken against professionals (e.g., doctors, lawyers) when they are accused of failing to provide the standard level of care, leading to harm or loss.

Accountant-Client Privilege

A legal principle that maintains the confidentiality of communications between an accountant and their client.

Federal Law

Federal Law consists of the body of law created by the federal government of a country, governing relationships, powers, and structure of its entities and individuals.