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:

Children Under 18

Refers to individuals who are below the age of 18, typically considered as minors in many legal jurisdictions.

Individuals Over 65

People who are aged 65 years and above, often considered as senior citizens.

Supplemental Nutrition

Assistance provided to individuals and families to afford nutritionally adequate diets, often through government programs.

Administrative Costs

Expenses associated with the general operation of a business, including costs related to management, legal services, and office supplies, that do not directly contribute to production.