Question 5

Question 8

PA6-3 Recording Sales with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6- 5) [The following information applies to the questions displayed below) Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual Inventory system. The following transactions (summarized) have been selected for analysis: $83,200 a. Sold merchandise for cash (cost of merchandise $44,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $6ee). c. Sold merchandise (costing $8,550 > to a customer on account with terms n/60. 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. 1,eee 18,eee 9,000 288 PA6-3 Part 2 2. Compute the gross profit percentage (Round your answer to 1 decimal place.) Gross Profit Percentage % Required Information PA6-4 Recording Journal Entry after Allocating Transaction Price to Performance Obligations [LO 6-5) [The following information applies to the questions displayed below) Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $2,600 per machine, HEC usually sells these machines to hospitals at a price of $5,390 HEC also separately sells 12 months of training and repair services for fMRI machines for $2,310. HEC is paid $5,390 cash on November 30 for the sale of an fMRI machine delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair service PA6-4 Part 1 Required: 1. For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair services, Allocated Transaction Price Equipment Service