Hair World Inc. 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 $42,797).	$	79,200
b.	Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $570 ).		950
c.	Sold merchandise (costing $8,075 ) to a customer on account with terms n/60.		17,000
d.	Collected half of the balance owed by the customer in (c).		8,500
e.	Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.		272

PA6-3 Part 1

Required:

1. Compute Net Sales and Gross Profit for Hair World.