Michelin Jewelers Uses the Perpetual Inventory System

Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold merchandise with a cost of $5,500 for $9,000 to a customer on account with terms of 3/15, n/30. 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. Calculate the amount of net sales revenue.

A) $8,760
B) $9,000
C) $8,000
D) $7,760

Correct Answer:

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