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:

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Required Reserve Ratio

The fraction of deposits that banks are required by law to keep on hand or with the central bank as a reserve.

M1 Money Supply

A category of money supply that includes all physical money like coins and currency, as well as demand deposits and other liquid assets held by the central bank.

Fed

The Federal Reserve System, often referred to as the Fed, is the central banking system of the United States, which oversees the nation's monetary policy by regulating banking institutions, stabilizing the financial system, and managing inflation and employment levels.