Michelin Jewelers completed the following transactions. Michelin Jewelers uses t

Question

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 company's ledger shows an Inventory balance of $20,000 and a physical count of the inventory shows $19,000 Which of the following entries is needed to record the shrinkage? A company's net sales revenues are $1,000,000. Its cost of goods sold is $400,000. Which of the following is its gross profit percentage? 167% 60% 250% 40%

Explanation / Answer

Hi, Answers are as follows: 1. D 2. A 3. B (please check calculations below) Gross Profit Rate = Gross Profit/Net Sales * 100 Gross Profit = Sales - COGS = 1000000 - 400000 = 600000 600000/1000000*100 = 60% Thanks, Aman

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