Bailey's Beauty World is a wholesaler of hair supplies. Bailey's Beauty World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $33,837). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition). for cash refund (original cost of merchandise $360). c. Sold merchandise (costing $8,740) 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 $280) after year-end from sales made during the year. Gross Profit Gross Profit Percentage by to $ 60,160 % 390 18,400 9,200 4. Bailey's Beauty World is considering a contract to sell merchandise to a hair salon chain for $43,000. This merchandise will cost Bailey's Beauty World $28,200. What would be the increase (or decrease) to Bailey's Beauty World gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) 188 400
Bailey's Beauty World is a wholesaler of hair supplies. Bailey's Beauty World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $33,837). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition). for cash refund (original cost of merchandise $360). c. Sold merchandise (costing $8,740) 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 $280) after year-end from sales made during the year. Gross Profit Gross Profit Percentage by to $ 60,160 % 390 18,400 9,200 4. Bailey's Beauty World is considering a contract to sell merchandise to a hair salon chain for $43,000. This merchandise will cost Bailey's Beauty World $28,200. What would be the increase (or decrease) to Bailey's Beauty World gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) 188 400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Bailey's Beauty World is a wholesaler of hair supplies. Bailey's Beauty World uses a perpetual inventory system. The
following transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $33,837).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition)
for cash refund (original cost of merchandise $360).
c. Sold merchandise (costing $8,740) 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 $280) after year-end from sales made
during the year.
Gross Profit
Gross Profit Percentage
by
to
$ 60,160
%
390
18,400
9,200
4. Bailey's Beauty World is considering a contract to sell merchandise to a hair salon chain for $43,000. This merchandise will cost
Bailey's Beauty World $28,200. What would be the increase (or decrease) to Bailey's Beauty World gross profit and gross profit
percentage? (Round "Gross Profit Percentage" to 1 decimal place.)
188
400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2c79d20-c457-44c8-857f-25877d790cb4%2Fcfe9b49e-4393-44f6-88af-2740fe2a1049%2Fa5dkpdxu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Bailey's Beauty World is a wholesaler of hair supplies. Bailey's Beauty World uses a perpetual inventory system. The
following transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $33,837).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition)
for cash refund (original cost of merchandise $360).
c. Sold merchandise (costing $8,740) 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 $280) after year-end from sales made
during the year.
Gross Profit
Gross Profit Percentage
by
to
$ 60,160
%
390
18,400
9,200
4. Bailey's Beauty World is considering a contract to sell merchandise to a hair salon chain for $43,000. This merchandise will cost
Bailey's Beauty World $28,200. What would be the increase (or decrease) to Bailey's Beauty World gross profit and gross profit
percentage? (Round "Gross Profit Percentage" to 1 decimal place.)
188
400
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