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) Ortiz Books, is a student co-op. Ortiz Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $178,670). $ 327,250 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $676). 1,620 c. Sold merchandise (costing $10,710) to a customer on account with terms n/30. 23,800 d. Collected half of the balance owed by the customer in (c) 11,900 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,480 f. Anticipate further returns of merchandise (costing $238) after month-end from sales made during the month. 890 CP6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Ortiz Books Not Sales Gross Profit 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.] Ortiz Books, is a student co-op. Ortiz Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $178,670) $ 32 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $676). c. Sold merchandise (costing $10,710) to a customer on account with terms n/30. 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. 7. Anticipate further returns of merchandise (costing $238) after month end from sales made during the month. CP6-3 (Algo) Part 2 -. Compute the gross profit percentage (Round your answer to 1 decimal place.) Gross Profit Percentage 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) Ortiz Books, is a student co-op. Ortiz Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $178,678). $ 327,250 D. Received merchandise returned by customers as unsatisfactory (but in perfect conditions for cash refund (original cost of merchandise $676). 1,620 c. Sold merchandise (costing $10,710) to a customer on account with terms 1/30. 23,800 d. Collected half of the balance owed by the customer in (c) 11,990 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,480 f. Anticipate further returns of merchandise (costing $238) after month-end from sales made during the month. 890 CP6-3 (Algo) Part 4 Ortiz Books is considering a contract to sell merchandise to a Ortiz Books organization for $18,800. This merchandise will cost or Books $15,040. Would this contract increase for decrease) Ortiz Books 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.) by Gross Pront Gross Profit Percentage to
