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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

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.
420
Required:
1 Compute Net Sales and Gross Profit for Patel Supply.
2 Compute the gross profit percentage.
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.
420
Prepare journal entries to record transactions (a)(f)
4. Patel Supply is considering a contract to sell merchandise to a hair salon chain for $47,000. This merchandise will cost Patel Supply $30,800. What would be the increase (or decrease) to Patel Supply gross profit and gross profit percentage?

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