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PB 6 - 3 ( Algo ) Recording Sales and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [ LO 6 - 4 ,
PBAlgo Recording Sales and Estimated and Actual Returns, and Analyzing Gross Profit Percentage LO LO
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 $
b Received merchandise returned by customers as unsatisfactory but in perfect condition for cash refund original cost of merchandise $
c Sold merchandise costing $ to a customer on account with terms
$
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.
Anticipate further returns of merchandise costing $ after yearend from sales made during the
year.
PBAlgo Part
is considering a contract to sell building supplies to a local home builder for $ These materials will cost $ Would this contract increase or decrease NHs dollars of gross profit and its gross profit percentage? Round "Gross Profit Percentage" to decimal place.
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