Required information PA6-3 Recording Sales with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6- 5] [The following information applies to the questions displayed below) Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $83,200 a. Sold merchandise for cash (cost of merchandise $44,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $600 ). C. Sold merchandise (costing $8,550 ) to a customer on account with terns 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. 1,000 18,000 9,000 288 PA6-3 Part 1 Required: 1. Compute Net Sales and Gross Profit for Hair World. $ 99,912 Net Sales Gross Profit 1 Record the cash sales of $83,200. 2 Record the cost of goods sold of $44,797. 3 Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $1,000 was given to the customer. 4 Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $600. 5 Record the sales on account of $18,000 on terms n/60. ch Record the cost of goods sold of $8,550. 7 Record the collection of half of the balance of $9,000 owed by the customer within the discount period. 8 Record the allowance of $288 granted to the customer