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:

Local Conditions

The specific circumstances, cultural, economic, and environmental factors that are unique to a particular area or community.

Rights Arbitration

A form of arbitration focusing on interpreting and applying terms of existing contracts or laws to resolve disputes over rights and obligations of parties.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Bargaining Team

A group of individuals, often comprised of union representatives or employees, designated to negotiate terms of employment, such as wages and conditions, with an employer.