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). 5.327,250 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 4 4. Ortiz Books is considering a contract to sell merchandise to a Ortiz Books organization for $18,800. This merchandise will cost Ortiz Books $15,040. Would this contract increase or 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.) Gross Profit Gross Profit Percentage increased decreased by to