Michelin Jewelers Completed the Following Transactions

question 50

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.How much cash was received from the customer?

• A) $8,000
• B) $8,730
• C) $7,760
• D) $2,260

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Definitions:

Services

Intangible activities or benefits that an organization provides to consumers in exchange for money or some other value.

Dollar Rate

The exchange rate of a currency against the US dollar.

British Pounds

The currency of the United Kingdom, officially known as the pound sterling, used across England, Scotland, Wales, and Northern Ireland.

Exchange

The act of trading goods, services, or financial instruments, which can occur in a physical or virtual marketplace.