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: a. Sold merchandise for cash (cost of merchandise $48,797). $ 91,200 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $660 ). 1,100 c. Sold merchandise (costing $9,500 ) to a customer on account with terms n/60. 20,000 d. Collected half of the balance owed by the customer in (c). 10,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 320 PA6-3 Part 1 Required: Compute Net Sales and Gross Profit for Hair World.
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: a. Sold merchandise for cash (cost of merchandise $48,797). $ 91,200 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $660 ). 1,100 c. Sold merchandise (costing $9,500 ) to a customer on account with terms n/60. 20,000 d. Collected half of the balance owed by the customer in (c). 10,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 320 PA6-3 Part 1 Required: Compute Net Sales and Gross Profit for Hair World.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PA6-3 Recording Sales with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5]
[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:
| a. | Sold merchandise for cash (cost of merchandise $48,797). | $ | 91,200 | |
| b. | Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $660 ). | 1,100 | ||
| c. | Sold merchandise (costing $9,500 ) to a customer on account with terms n/60. | 20,000 | ||
| d. | Collected half of the balance owed by the customer in (c). | 10,000 | ||
| e. | Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. | 320 | ||
PA6-3 Part 1
Required:
- Compute Net Sales and Gross Profit for Hair World.
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