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PB 6 - 3 ( Algo ) Recording Sales and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [ LO 6 - 4 ,

PB6-3(Algo) Recording Sales and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5]
[The following information applies to the questions displayed below.]
Northside Hardware (NH) is a local hardware store. NH uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $288,350).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $3,000).
c. Sold merchandise (costing $4,920) to a customer on account with terms n30.
$660,000
d. Collected half of the balance owed by the customer in (c).
4,800
e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.
8,200
f. Anticipate further returns of merchandise (costing $2,980) after year-end from sales made during the
4,100
1,750
year.
4,600
PB6-3(Algo) Part 4
4.NH is considering a contract to sell building supplies to a local home builder for $23,200. These materials will cost NH$18,560. Would this contract increase (or decrease) NH's dollars of gross profit and its gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.)
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