$1$

Required information

$[$The following information applies to the questions displayed below.$]$

Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions $($summarized$)$ have been selected for analysis:

a$.$ Sold merchandise for cash $($cost of merchandise $$28,797).$

b$.$ Received merchandise returned by customers as unsatisfactory $($but in perfect condition$)$ for cash refund $($original cost of merchandise $$220).$

c$.$ Sold merchandise $($costing $$4,750)$ to a customer on account with terms $\frac{n}{60}.$

d$.$ Collected half of the balance owed by the customer in $($c$).$

e$.$ Granted a partial allowance relating to credit sales the customer in $($c$)$ had not yet paid.

f$.$ Anticipate further returns of merchandise $($costing $$140)$ after year$-$end from sales made $$51,200$ during the year.

$250$

$10,000$

$5,000$

$160$

$350$

Required:

Compute Net Sales and Gross Profit for Hair World.

Net Sales

Gross Profit