Required Information PB6-3 (Algo) Recording Sales and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO64,LO65] [The following information applies to the questions displayed below.] Hardware Heaven (HH) is a local hardware store. HH uses a perpetual Inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $236,350 ). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $1,375 ). c. Sold merchandise (costing $3,360 ) to a customer on account with terms n/30. d. Collected half of the balance owed by the customer in (c). f. Anticipate further returns of merchandise (costing $1,299 ) after year-end from sales made during the year. 2, PB6-3 (Algo) Part 4 4. HH is considering a contract to sell bullding supplies to a local home bullder for $20,600. These materlals will cost HH $16,480. Would this contract increase (or decrease) HH's dollars of gross profit and its gross profit percentage? (Round "Gross Proflt Percentage" to 1 decimal place.)