4. Foster Supplies is considering a contract to sell merchandise to a hair salon chain for $49,000. This merchandise will cost Foster Supplies $32,100. What would be the increase (or decrease) to Foster Supplies gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit by Gross Profit Percentage to %
4. Foster Supplies is considering a contract to sell merchandise to a hair salon chain for $49,000. This merchandise will cost Foster Supplies $32,100. What would be the increase (or decrease) to Foster Supplies gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit by Gross Profit Percentage to %
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 7PA: Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks...
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Foster Supplies is a wholesaler of hair supplies. Foster Supplies uses a perpetual inventory system. The following
transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $34,917).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition)
for cash refund (original cost of merchandise $390).
c. Sold merchandise (costing $9,595) 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.
f. Anticipate further returns of merchandise (costing $310) after year-end from sales made
during the year.
$ 62,080
420
20,200
10,100
194
430](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1130bb74-d759-4a7d-be09-076557ecc6db%2Fc60e48d5-5faa-4ebd-a887-bfdc8a60e93b%2F3339q4f_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Foster Supplies is a wholesaler of hair supplies. Foster Supplies uses a perpetual inventory system. The following
transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $34,917).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition)
for cash refund (original cost of merchandise $390).
c. Sold merchandise (costing $9,595) 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.
f. Anticipate further returns of merchandise (costing $310) after year-end from sales made
during the year.
$ 62,080
420
20,200
10,100
194
430
![4. Foster Supplies is considering a contract to sell merchandise to a hair salon chain for $49,000. This merchandise will cost Foster
Supplies $32,100. What would be the increase (or decrease) to Foster Supplies gross profit and gross profit percentage? (Round
"Gross Profit Percentage" to 1 decimal place.)
Gross Profit
by
Gross Profit Percentage
to
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1130bb74-d759-4a7d-be09-076557ecc6db%2Fc60e48d5-5faa-4ebd-a887-bfdc8a60e93b%2Fkhq0r6_processed.png&w=3840&q=75)
Transcribed Image Text:4. Foster Supplies is considering a contract to sell merchandise to a hair salon chain for $49,000. This merchandise will cost Foster
Supplies $32,100. What would be the increase (or decrease) to Foster Supplies gross profit and gross profit percentage? (Round
"Gross Profit Percentage" to 1 decimal place.)
Gross Profit
by
Gross Profit Percentage
to
%
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning