Required information [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: $23,200 a. Sold merchandise for cash (cost of merchandise $14,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $150 ). c. Sold merchandise (costing $3,088 ) 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 (c) had not yet paid. 250 6,500 3,250 104 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $11,500. This merchandise will cost Hair World $8,320. What would be the increase (or decrease) to Hair World's gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage Required information [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: $23,200 a. Sold merchandise for cash (cost of merchandise $14,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $150 ). c. Sold merchandise (costing $3,088 ) 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 (c) had not yet paid. 250 6,500 3,250 104 Required: 1. Compute Net Sales and Gross Profit for Hair World. Answer is complete but not entirely correct. Net Sales Gross Profit $ $ 29,700 39 Required information [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: $ 23, 200 a. Sold merchandise for cash (cost of merchandise $14,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $150 ). c. Sold merchandise (costing $3,088 ) 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 (c) had not yet paid. 250 6,500 3,250 104 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage 39.4 % 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: $ 23, 200 a. Sold merchandise for cash (cost of merchandise $14,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $150 ). c. Sold merchandise (costing $3,088 ) 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 (c) had not yet paid. 250 6,500 5. Prepare journal entries to record transactions (a)-(e). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet
