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] Foster Supplies is a wholesaler of hair supplies. Foster Supplies uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $ 62,000 d. Sold merchandise for cash (cost of merchandise $34,917) b. Received merchandise returned by customers as unsatisfactory (but in perfect condition for cash refund (original cost of merchandise 3390). c. Sold merchandise (costing $9,595) to customer on account with teres w/60. d. Collected half of the balance owed by the customer in (c) 1. Granted a partial allowance relating to credit sales the customer in () had not yet paid. f. Anticipate further returns of merchandise (costing $310) after year-end from sales made during the year. 420 20,200 10,100 194 430 PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Foster Supplies 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) Foster Supplies is a wholesaler of hair supplies. Foster Supplies uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis a. Sold merchandise for cash (cost of merchandise $34,917). $ 62,080 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $390). 420 c. Sold merchandise (costing $9,595) to a customer on account with terms n/60. 20,200 d. Collected half of the balance owed by the customer in (c). 10,100 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 194 f. Anticipate further returns of merchandise (costing $310) after year-end from sales made during the year. 430 PA6-3 (Algo) Part 2 2. Compute the gross profit percentage (Round your answer to 1 decimal place.) Gross Profit Percentage % Inventory 34.917 3 b(1) Sales Returns and Allowances 420 Cash 420 b(2) Inventory Cost of Goods Sold 390 390 5 c(1) Accounts Receivable Sales Revenue 20,200 >> 20,200 6 c(2) Cost of Goods Sold Inventory 9,595 S. 9,595 7 d Cash Accounts Receivable 20,200 20,200 O O 8 e Sales Returns and Allowances Accounts Receivable 194 s 194 9 f(1) Sales Returns and Allowances Accounts Receivable 430 430 10 1(2) Inventory Cost of Goods Sold 310 310 o 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) Foster Supplies is a wholesaler of hair supplies. Foster Supplies uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: . Sold merchandise for cash (cost of merchandise $34,917). $ 62,080 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition for cash refund (original cost of merchandise $390). 420 c. Sold merchandise (costing $9,595) to a customer on account with terus 0/60. 20, 200 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 $310) after year-end from sales made during 10,100 194 the year. 430 PA6-3 (Algo) Part 4 4. Foster Supplies is considering a contract to sell merchandise to a hair salon chain for $49,000. This merchandise will cost Foster Supplies $32,100. What would be the increase or decrease) to Foster Supplies gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) by Gross Profit Gross Profit Percentage to %
