Quality Jewelers Uses the Perpetual Inventory System

question 100

Multiple Choice

Quality Jewelers uses the perpetual inventory system.On April 2,Quality sold merchandise for $50,000 to a customer on account with terms of 3/15,n/30.The allowances and returns on this sale amounted to $3,000 and $9,000,respectively.The cost of goods sold was $20,000.On April 20,Quality received payment from the customer.Calculate the amount of gross profit.

• A)$38,000
• B)$20,000
• C)$18,000
• D)$16,500

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Definitions:

Minor

An individual under the legal age of adulthood, often considered as under 18 years in many jurisdictions.

All-Season Passes

Tickets or passes that grant holders access to a facility, service, or event across all seasons of a year, often seen in theme parks or ski resorts.

Unconscionable

Refers to something not right or fair, often in a legal context to describe terms that are excessively unfair to one party.

Benefits

Various forms of value, such as medical insurance, retirement plans, or paid leave, provided to employees in addition to wages or salaries.