Michelin Jewelers Completed the Following Transactions B) C) D) $$\begin{array} { | c | r | r | } \hline \text { Sales returns and allowances } & 1,000 & \\\hline \text { Cash } & & 1,000 \\\hline\end{array}$$

question 158

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.
-Which of the following entries correctly records the sales allowance on Michelin's books?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Sales returns and allowances } & 1,000 & \\
• \hline \text { Accounts receivable } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Sales returns and allowances } & 1,000 & \\
• \hline \text { Sales revenue } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of goods sold } & 1,000 & \\
• \hline \text { Sales returns and allowances } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Sales returns and allowances } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

Social Psychology

The scientific study of how a person’s thoughts, feelings, and behavior influence and are influenced by social groups; area of psychology in which psychologists focus on how human behavior is affected by the presence of other people.

Conformity

Conformity is the act of matching attitudes, beliefs, and behaviors to group norms, expectations, or pressures.

Interpersonal Attraction

Liking or having the desire for a relationship with another person.

Cognitive Dissonance

Sense of discomfort or distress that occurs when a person’s behavior does not correspond to that person’s attitudes.