Required information [The following information applies to the questions displayed below.] Castillo Supplies (CS) is a local hardware store. CS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $264,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $2,250). c. Sold merchandise (costing $4,200) to a customer on account with terms n/30. $600,000 3,600 7,000 3,500 Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. f. Anticipate further returns of merchandise (costing $2,200) after year-end from sales made during the year. 1,450 3,400 d. Collected half of the balance owed by the customer in (c). e. 4. CS is considering a contract to sell building supplies to a local home builder for $22,000. These materials will cost CS $17,600. Would this contract increase (or decrease) CS's dollars of gross profit and its gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage by to % ! Required information [The following information applies to the questions displayed below.] Great American Oilchange (GAO) sells a combined oil change service and parts package for $68. A customer who supplies the parts (oil and filter) is charged $58 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $58 for the parts. The parts cost GAO $52. Required: 1. Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change package. TIP: To calculate the percentage of the combined package that relates to the service, divide the stand-alone selling price of the service by the combined stand-alone selling prices of both the service and parts. Parts Service Allocated Transaction Price Great American Oilchange (GAO) sells a combined oil change service and parts package for $68. A customer who supplies the parts (oil and filter) is charged $58 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $58 for the parts. The parts cost GAO $52. 2. Prepare the journal entry GAO would record if GAO provides a combined oil change service and parts package to a customer on October 7. Assume GAO distinguishes Service Revenue from Sales Revenue arising from the sale of parts, it uses a perpetual inventory system for recording the cost of goods sold, and it collects cash the day the oil change is performed. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the receipt of service and sales revenues. 2 Record the cost of goods sold