Required information

CP$6-3($Algo$)$ Recording Cash Sales, Credit Sales, Estimated and Actual Sales Returns, and Sales

Allowances, and Analyzing Gross Profit Percentage $[$LO $6-4,$ LO $6-6]$

$[$The following information applies to the questions displayed below.$]$

Handy Howard's Incorporated, is a student co$-$op$.$ Handy Howard uses a perpetual inventory system. The following

transactions $($summarized$)$ have been selected for analysis:

a$.$ Sold merchandise for cash $($cost of merchandise $$154,870).$

b$.$ Received merchandise returned by customers as unsatisfactory $($but in perfect condition$)$ for cash

refund $($original cost of merchandise $$608).$

c$.$ Sold merchandise $($costing $$9,180)$ to a customer on account with terms $\frac{n}{30}.20,400$

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.

f$.$ Anticipate further returns of merchandise $($costing $$204)$ after month$-$end from sales made during

the month.

CP$6-3($Algo$)$ Part $1$

Required:

Compute Net Sales and Gross Profit for Handy Howard.