CP6-3 Recording Cash Sales, Credit Sales, 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) Campus Stop, Inc., Is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $289,900 a. Sold merchandise for cash (cost of merchandise $158,710). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $900). c. Sold merchandise (costing $12,150) to a customer on account with term n/30. d. Collected half of the balance owed by the customer in (e). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,700 27,000 13,500 1,940 CP6-3 Part 4 4. Campus Stop is considering a contract to sell merchandise to a campus organization for $22,000. This merchandise will cost Campus Stop $14,300. Would this contract increase for decrease) Campus Stop's 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.) by $ Gross Profit increased Gross Profit Percentage decreased 7.700 0.7% to