Michelin Jewelers Completed the Following Transactions

question 78

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 Gross profit?

• A) $2,260
• B) $3,500
• C) $3,260
• D) $3,230

---

Definitions:

Retrieved

The process of recovering stored information from memory for active use.

Source Amnesia

A type of memory disorder where an individual can remember certain information but is unable to recall where, when, or how the information was learned.

Retroactive Interference

A memory phenomenon where newly learned information interferes with and hampers the recall of previously learned information.

Anterograde Amnesia

The loss of the ability to create new memories after the event that caused the amnesia, leading to a partial or complete inability to recall the recent past, while long-term memories from before the event remain intact.