Help 4 of 4 41:24 Required information PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5) [The following information applies to the questions displayed below.) Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: . Sold merchandise for cash (cost of merchandise $33,397) 6. Heceived merchandise returned by customers as satisfactory (but in perfect condition for $ 57,600 cash refund (original cost of merchandise 5320). 350 c. Sold merchandise (costing $7,600) to customer on account with teres / 10.900 . Collected half of the balanced by the customer in (c) 3,000 e. Granted a partial allowance relating to credit sales the customer in () had not yet paid. 10 f. Anticipate further returns of merchandise (costing $240) after year and from ales sed during 360 the year PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Hughes Hair Design Not Sales a. Sold merchandise for cash (cost of merchandise $32,397). b. Received merchandise returned by customers as unsatisfactory (but in perfect conditio cash refund (original cost of merchandise $320) c. Sold merchandise (costing $7,680) to a customer on account with term n/60. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet f. Anticipate further returns of merchandise (costing $248) after year-end from sales ma the year. 31:01 PA6-3 (Algo) Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit: Percentage % Sav PA6-3 (Algo) Part 3 3. Prepare journal entries to record transactions (it. Of no entry is required for a transaction/event, select "Ne Journal Entry Required" in the first account field.) Vlow transaction at Journal entry worksheet BI arch 0 63'F Mostly dear ED Journal entry worksheet o o IT Journal entry worksheet The anticipated merchandise returns have a cost of $240. Record the entry Hote: Enter debits before credits. General Journal Debit Credit Transaction f(2) 57 4 of 4 a. Sold merchandise for cash (cost of merchandise $32,397) b. Received merchandise returned by customers as unsatisfactory (but in perfect conditions for cash refund (original cost of merchandise $320) c. Sold merchandise (costing $7.600) to a customer on account with terms 1/60 d. Collected half of the balance owed by the customer in (c) .. Granted partial allowance relating to credit sales the customer in (c) had not yet pald f. Anticipate further returns of merchandise (costing $240) after year-end from sales made during the year. $ 5,60 350 16,000 10 3:37:20 PA6-3 (Algo) Part 4 sok 4. Hughes Hair Design is considering a contract to sell merchandise to a hair salon chain for $35,000. This merchandise will cont Hughes Hair Design $23,000. What would be the increase for decrease) to Hughes Hair Design gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) ant Gross Profit Gross Profit Percentage by to 8
