Required information [ The following information applies to the questions displayed below.] Mendoza Incorporated, is a student co-op. Mendoza uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $161,870). $ 294, 250 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $628). 1, 709 c. Sold merchandise (costings $9, 630) to a customer on account with terms n/30. 21, 400 d. Collected half of the balance owed by the customer in (c). 10,700 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1, 240 f. Anticipate further returns of merchandise (costing $214) after month-end from sales made during the month. 770 Required: 1. Compute Net Sales and Gross Profit for Mendoza. Net Sales $ 311,940 Gross Profit 141,282