CP6-3 (Algo) Recording Cash Sales, Credit Sales, Estimated and Actual Sales Returns, and Sales Allowances, and Analyzing Gross Profit Percentage (LO 6-4, LO 6-6) [The following information applies to the questions displayed below.) Mendoza Incorporated, is a student co-op. Mendoza uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $161,870). $ 294,250 D. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise 3628). 1,700 C. Sold merchandise (costing $9,630) to a customer on account with terms 1/30. 21,400 d. Collected half of the balance owed by the customer in (c). 10,700 e. Granted a partial allowance relating to credit sales the custoner in (c) had not yet paid. 1,240 7. Anticipate further returns of merchandise (costing $214) after month-end from sales made during the month. 770 CP6-3 (Algo) Part 4 4. Mendoza is considering a contract to sell merchandise to a Mendoza organization for $16,400. This merchandise will cost Mendoza $13,120. Would this contract increase or decrease) Mendoza dollars of gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage by to %