! Required information CP6-3 (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: 3. Sold merchandise for cash (cost of merchandise $177,270). $ 324,500 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash 1,630 c. Sold merchandise (costing $10,620) to a customer on account with terms n/30. 23,600 d. Collected half of the balance owed by the custoner in (c). 11,800 . Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,460 1. Anticipate further returns of merchandise (costing $236) after month-end from sales made during the month. 880 CP6-3 (Algo) Part 4 4. Handy Howard is considering a contract to sell merchandise to a Handy Howard organization for $18,600. This merchandise will cost Handy Howard $14,880. Would this contract increase for decrease) Handy Howard dollars of gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.)