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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:
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 $18,797). | $31,200 |
b. | Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $210). | 350 |
c. | Sold merchandise (costing $3,563) to a customer, on account with terms 2/10, n/30. | 7,500 |
d. | Collected half of the balance owed by the customer in (c) within the discount period. | 3,675 |
e. | Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid | 120 |
Required: | |
1. | Compute Sales Revenue, Net Sales, Gross Profit, and the gross profit percentage (rounded to one decimal place) for Hair World. |
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