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:

Obedience Experiments

Psychological tests that study the extent to which a person can be made to comply with orders, often in conflict with personal conscience.

Visual Perception

The brain's process of interpreting and making sense of visual information received from the environment through the eyes.

Perceived Authority

The extent to which an individual is viewed as a source of knowledgeable or legitimate power by others.

Compliance Levels

The degree to which individuals or groups follow guidelines, rules, or regulations imposed by authorities or standards.