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: $75,200 a. Sold merchandise for cash (cost of merchandise $40,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $540 ). c. Sold merchandise (costing $7,600 ) 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. 900 16,000 8,000 256 Required: 1. Compute Net Sales and Gross Profit for Hair World. Net Sales Gross Profit 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage % Required information NO Transaction General Journal Debit Credit 1 a(1) Cash 75,200 Sales Revenue 75,200 2 a(2) Cost of Goods Sold 40,797 Inventory 40,797 3 b(1) 900 Cash 900 4 b(2) 540 Inventory Cost of Goods Sold 540 5 c(1) Accounts Receivable 16,000 Sales Revenue 16,000 6 c(2) Cost of Goods Sold 7,600 Inventory 7,600 7 d Cash 8,000 Accounts Receivable 8,000 8 e 256 256 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $21,000. This merchandise will cost Hair World $12,880. 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 increased by $ 8,120 Gross Profit Percentage decreased to %