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: 25 $31,200 a. Sold merchandise for cash (cost of merchandise $18,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $210). c. Sold merchandise (costing $3,563) 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 (e) had not yet paid. 350 7,500 3,750 120 PA6-3 Part 4 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $12,500. This merchandise will cost Hair World $8,800. What would be the increase or decrease) to Hair World's gross profit and gross profit percentago? (Round "Gross Profit Percentage" to 1 decimal place.) by Gross Profit Gross Profit Percentage 0 %