21 michelin jewelers completed the following transactions michelin jewelers uses the 4311529

21) 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. Which of the following journal entries correctly records the Sales revenue?

A)

Sales revenue	9,000
Accounts receivable		9,000

B)

Sales revenue	9,000
Cost of goods sold		9,000

C)

Cash	9,000
Sales revenue		9,000

D)

Accounts receivable	9,000
Sales revenue		9,000

22) 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.   Which of the following journal entries correctly records the Cost of goods sold?

A)

Cost of goods sold	5,500
Accounts receivable		5,500

B)

Sales revenue	5,500
Cost of goods sold		5,500

C)

Cost of goods sold	5,500
Inventory		5,500

D)

Inventory	5,500
Cost of goods sold		5,500

23) 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.  Which of the following entries correctly records the sales allowance on Michelin's books?

A)

Sales returns and allowances	1,000
Accounts receivable		1,000

B)

Sales returns and allowances	1,000
Sales revenue		1,000

C)

Cost of goods sold	1,000
Sales returns and allowances		1,000

D)

Sales returns and allowances	1,000
Cash		1,000

24) 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.  Which of the following entries correctly records the cash receipt on Michelin's books?

A)

Cash	7,760
Sales discount	240
Accounts receivable		8,000

B)

Accounts receivable	8,000
Sales discount		240
Cash		7,760

C)

Cash	8,000
Accounts receivable		8,000

D)

Cash	7,760
Accounts receivable		7,760

25) 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

26) 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 Gross profit?

A) $2,260

B) $3,500

C) $3,260

D) $3,230

27) 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

28) 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 22, 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

29) Which of the following defines Gross profit?

A) Sales revenue less Sales returns and allowances

B) Sales revenue less Operating expenses

C) Net sales revenue less Sales discounts

D) Net sales revenue less Cost of goods sold

30) Which of the following defines Net sales revenue?

A) Sales revenue less Sales returns and allowances, and Sales discounts

B) Sales revenue less Operating expenses

C) Sales revenue less Sales discounts

D) Sales revenue less Cost of goods sold

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