Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandi se for cash (cost of merchandi se $224, 350). b. Received merchandi se returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $1, 900). Sold merchandi se (costing $3, 000) to a customer on account with terms n/30. 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. $500, 000 3, 000 5, 000 2, 500 950 c. PB6-3 Part 1 Required: 1. Compute Net Sales and Gross Profit for LBS. Net Sales Gross Profit 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $3,000 was given to the customer. Note: Enter debits before credits. Transaction General Journal Debit Credit 3,000 b(1) Cash 3,000 Record entry View general journal Clear entry Record the collection of half of the balance of $2,500 owed by the customer within the discount period. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Record the allowance of $950 granted to the customer. Note: Enter debits before credits. General Journal Transaction Debit Credit Record entry Clear entry View general journal 4. LBS is considering a contract to sell building supplies to a local home builder for $20,000. These materials will cost LBS $16,000. Would this contract increase (or decrease) LBS's dollars of gross profit and its gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit by Gross Profit Percentage to