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: a. Sold merchandise for cash (cost of merchandise $40,797) b. Received merchandise returned by customers as unsatisfactory (but in perfect $75,288 condition) for cash refund (original cost of merchandise $540) c. Sold merchandise (costing $7,600 ) to a customer on account with terms n/0. 16,000 d. Collected half of the balance owed by the customer in () e. Granted a partial allowance relating to credit sales the customer in (c) had 900 8,800 not yet paid. PA6-3 Part 4 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $21,000. This merchandise will cost Hair World $12.880. What would be the increase for decrease) to Hair World's gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimel place.) Gross Profit by Gross Profit Percentage to