of 4 Required information CP6-3 (Algo) Recording Cash Sales, Credit Sales, Estimated and Actual Sales Returns, and Sales Allowances, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] Grayson & Kim Books, is a student co-op. Grayson & Kim Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $175,870). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $668). c. Sold merchandise (costing $10,530) to a customer on account with terms n/30. 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 $234) after month-end from sales made during the month. $321,750 1,650 23,400 11,700 1,440 870 ces CP6-3 (Algo) Part 4 4. Grayson & Kim Books is considering a contract to sell merchandise to a Grayson & Kim Books organization for $18,400. This merchandise will cost Grayson & Kim Books $14,720. Would this contract increase (or decrease) Grayson & Kim Books dollars of gross profit and its gross profit percentage? TIP The impact on gross profit dollars may differ from the impact on gross profit percentage (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit increased by S 3,680 Gross Profit Percentage decreased. to