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 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $628). 1,700 c. Sold merchandise (costing 59,630) to a customer on account with terms n/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 customer in (c) had not yet paid. 1,240 f. 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 Porcentage increased decreased by to 3,280 1.31%