Question
Hi there, I need help with this question and explain it too. Thank you so so much! Hair Care Inc. is a wholesaler of hair
Hi there, I need help with this question and explain it too. Thank you so so much!
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:
| a. | Sold merchandise for cash (cost of merchandise $28,797) | $ | 51,200 | |
| b. | Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $360) | 600 | ||
| c. | Sold merchandise (costing $4,750) to a customer, on account with terms 2/10, n/30 | 10,000 | ||
| d. | Collected half of the balance owed by the customer in (c) within the discount period | 4,900 | ||
| e. | Granted an allowance to the customer in (c) | 160 | ||
| 1. Compute Sales Revenue, Net Sales, and Gross Profit for Hair World. SAle revenue is 61,200 Net sale is 60,340 Gross profit is 27,153 4. Hair Care is considering a contract to sell merchandise to a hair salon chain for $15,000. This merchandise will cost Hair Care $10,000. (a) Compute the new gross profit percentage. (Round your answer to the nearest whole percent.) (b) Would this contract increase or decrease Hair Cares gross profit percentage?
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Continuous Auditing Theory And Application
Authors: David Y. Chan, Victoria Chiu
1st Edition
1787434141, 978-1787434141
