Michelin Jewellers Completed the Following Transactions $$\begin{array} { | l | r | r | } \hline \text { Inventory } & 5000 & \\\hline \text { Cost of sales } & & 5000 \\\hline\end{array}$$

question 3

Multiple Choice

Michelin Jewellers completed the following transactions.Michelin Jewellers uses the perpetual inventory system.On 2 April,Michelin sold $9 900 of inventory,including GST,to a customer on credit with terms of 3/15,n/30.Michelin's cost of the inventory sold was $5 000,net of GST.Which of the following journal entries correctly records the Cost of sales?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Inventory } & 5000 & \\
• \hline \text { Cost of sales } & & 5000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Sales revenue } & 5000 & \\
• \hline \text { Cost of sales } & & 5000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of sales } & 5000 & \\
• \hline \text { Accounts receivable } & & 5000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of sales } & 5000 & \\
• \hline \text { Inventory } & & 5000 \\
• \hline
• \end{array}\]

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Definitions:

Sustainability Focus

An approach centered on ecological and social responsibility in business practices to ensure long-term environmental health and viability.

Carbon Tax System

An environmental policy instrument that places a tax on carbon dioxide emissions, aiming to reduce the impact of climate change by encouraging reductions in greenhouse gas emissions.

Price of Emissions

Concerns the cost associated with releasing pollutants into the environment, often factored into the production costs for companies under environmental regulations.

Differential Pricing

A pricing strategy where a company charges different prices for the same product or service based on various factors like market segment, purchase volume, or buying behavior.