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.] Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $ 51,840 a. Sold merchandise for cash (cost of merchandise $29,157). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $230). c. Sold merchandise (costing $5,035) 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 $150) after year-end from sales made during the year. 260 10,600 5,300 162 270 PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Hughes Hair Design. Net Sales Gross Profit PA6-3 (Algo) Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage % 3. Prepare journal entries to record transactions (a)-(1)-(lf no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Sold merchandise for $51,840 cash. Record the entry. Note: Enter debits before credits. Transaction General Journal Debit Credit a(1) Record entry Clear entry View general journal 4. Hughes Hair Design is considering a contract to sell merchandise to a hair salon chain for $17,000. This merchandise will cost Hughes Hair Design $11,300. What would be the increase or decrease) to Hughes Hair Design gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage by to %