Answered step by step
Verified Expert Solution
Question
1 Approved Answer
My Gross percentage is incorrect. Kelly Creations is a wholesaler of hair supplies, Kelly Creations uses a perpetual inventory system. The following transactions (summarized) have
My Gross percentage is incorrect.
Kelly Creations is a wholesaler of hair supplies, Kelly Creations uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $ 59,520 a. Sold merchandise for cash (cost of merchandise $33,477). b. Received merchandise returned by customers an unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $350). c. Sold merchandise (costing $8,455) to a customer on account with terms 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 paid f. Anticipate further returns of merchandise (costing $270) after year-end from sales made during the year. 380 17,800 8,900 186 390 4. Kelly Creations is considering a contract to sell merchandise to a hair salon chain for $41,000. This merchandise will cost Kelly Creations $26,900. What would be the increase (or decrease) to Kelly Creations gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit by $ increased decreased 14,100 41.8% Gross Profit Percentage to Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started