Use the following trial balance to answer question 7 2. Debit $4,000 14,000 16,000 5,000 00,000 Credit Cash Accounts Receivable Merchandise Inventory Supplies Land Accounts Payable Notes Payable Song, Capital Song, Withdrawals Sales Revenue Cost of Goods Sold Salaries Expense Utilities Expense Rent Expense Interest Expense Totals S6,000 25,000 71,000 2,000 169,000 80,000 5,000 24,000 18,000 $271,000 7) The gross profit for this company is D) $89,000 C) $282,000 B) $180,000 A) SI 69,00 8) Operating income is calculated as the difference between gross profit and A) cost of menchandise inventory C) selling and administrative expenses. B) sales revenue. D) oost of goods sold 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. The journal entry to record the cost of goods sold would be ost of Goods Sold Accounts Receivable B) of Goods Sold Merchandise Inventory erchandise In Cost of Goods Sold Sales Revenue Cost of Goods Sold