PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5]

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Patel Supply Corporation is a wholesaler of hair supplies. Patel Supply uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a. Sold merchandise for cash (cost of merchandise $34,557).	$ 61,440
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $380).	410
c. Sold merchandise (costing $9,310) to a customer on account with terms n/60.	19,600
d. Collected half of the balance owed by the customer in (c).	9,800
e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.	192
f. Anticipate further returns of merchandise (costing $300) after year-end from sales made during the year.