Hair Care Inc. is a wholesaler of hair supplies. Hair Care uses a perpetual Inventory system. The following transactions (summarized) have been selected for analysis: 0. sold merchandise for cash (cost of merchandise $29,297) b. C. Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $410) sold merchandise (costing $5,000) to a customer, on account with terms 1/10, n/38 a. e. Collected half of the balance owed by the customer in (c) within the discount period Granted an allowance to the customer in (c) Required: 1. Compute Sales Revenue, Net Sales, and Gross Profit for Hair World. Sales revenue $ 61,700 Net sales Gross profit 2. Compute the gross profit percentage. (Round your answer to the nearest whole percent.) Gross profit percentage 1 a-1. Cash Sales revenue $ 51,700 2 a-2. Cost of goods sold Inventory 650 10,000 4,950 185 3 b-1. Accounts receivable. Cash 4 b-2 5 01 Inventory Cost of goods sold Accounts receivable. Sales revenue 6 2 Cost of goods sold Inventory 7 d. Cash Accounts receivable 8 e. Sales returns and allowances Accounts receivable 51,700 51,700 3. Prepare journal entries to record transactions (a)-(e). (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleldi.) 4. Hair Care is considering a contract to sell merchandise to a hair salon chain for $15,500. This merchandise will cost Hair Care $10,000. (e) Compute the new gross profit percentage. (Round your answer to the nearest whole percent.) View transaction list View journal entry worksheet No Transaction General Journal 1 a-1. Cash Sales revenue 2 a-2. 3 b-1 Cost of goods sold Inventory Accounts receivable. Cashi Debit Credit 51,700 51,700 New gross profit percentage 2 % (b) Would this contract Increase or decrease Hair Care's gross profit percentage? O Increase Decrease