Required information PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5] [The following information applies to the questions displayed below.] Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32,037). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $310). c. Sold merchandise (costing $7,315) to a customer on account with terms n/60. $ 56,960 340 d. Collected half of the balance owed by the customer in (c). 15,400 7,700 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 178 f. Anticipate further returns of merchandise (costing $230) after year-end from sales made during the year. 350 PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Hair World. Net Sales Gross Profit Required information PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5] [The following information applies to the questions displayed below.] Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32,037). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $310). c. Sold merchandise (costing $7,315) to a customer on account with terms n/60. $ 56,960 340 d. Collected half of the balance owed by the customer in (c). 15,400 7,700 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 178 f. Anticipate further returns of merchandise (costing $230) after year-end from sales made during the year. 350 PA6-3 (Algo) Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage % ! Required information PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5] [The following information applies to the questions displayed below.] Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32,037). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $310). c. Sold merchandise (costing $7,315) to a customer on account with terms n/60. $ 56,960 340 d. Collected half of the balance owed by the customer in (c). 15,400 7,700 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 178 f. Anticipate further returns of merchandise (costing $230) after year-end from sales made during the year. 350 PA6-3 (Algo) Part 4 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $33,000. This merchandise will cost Hair World $21,700. What would be the increase (or decrease) to Hair World's gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage by to %