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.] Ramos Hair Styling is a wholesaler of hair supplies. Ramos Hair Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $ 55,040 a. Sold merchandise for cash (cost of merchandise $30,957). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $280). c. Sold merchandise (costing $6,460) to a customer on account with terms n/60. 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 $200) after year-end from sales made during the year. 310 13,600 6,800 172 320 PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Ramos Hair Styling. Net Sales Gross Profit 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.] Ramos Hair Styling is a wholesaler of hair supplies. Ramos Hair Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $ 55,040 a. Sold merchandise for cash (cost of merchandise $30,957). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $280). c. Sold merchandise (costing $6,460) to a customer on account with terms n/60. 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 $200) after year-end from sales made during the year. 310 13,600 6,800 172 320 PA6-3 (Algo) Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage % PA6-3 (Algo) Part 3 3. Prepare Journal entries to record transactions (a)-(1. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction General Journal Credit Debit 55,040 1 a(1) Cash Sales Revenue 55,040 N a(2) 30.957 Cost of Goods Sold Inventory 30,957 3 b(1) Sales Retums and Allowances 310 Cash 310 4 b(2) 280 Inventory Cost of Goods Sold 280 5 c(1) 13,600 Accounts Receivable Sales Revenue 13,600 6 c(2) 6,460 Cost of Goods Sold Inventory 6,460 7 d 13,600 Cash Accounts Receivable 13,600 8 e 172 Sales Returns and Allowances Accounts Receivable 172 9 f(1) 320 Sales Retums and Allowances Sales Revenue 320 10 f(2) 200 Inventory-Estimated Returns Cost of Goods Sold 200 PA6-3 (Algo) Part 4 4. Ramos Hair Styling is considering a contract to sell merchandise to a halr salon chain for $27,000. This merchandise will cost Ramos Hair Styling $17,800. What would be the Increase (or decrease) to Ramos Hair Styling gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage increased decreased by to %
