PA6-3 (Static) Recording Sales with Discounts and Estimated and Actual Returns, and AnalyzingGross Profit Percentage [LO 6-4, LO 6-5)(The following information applies to the questions displayed below)Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The followingtransactions (summarized) have been selected for analysis:$ 51,200a. Sold merchandise for cash (cost of merchandise $28,797).b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) forcash refund (original cost of merchandise $220).e. Sold merchandise (costing $4,750) 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 $140) after year-end from sales made duringthe year.25010,e005,000160350PA6-3 (Static) Part 1Required:1. Compute Net Sales and Gross Profit for Hair World.Net Sales60,600

Cost of goods sold = Cost of goods sold for cash + Cost of goods sold on account - goods returned =…

Answered: Hair World Incorporated is a wholesaler…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Haynes Jewelers uses a perpetual inventory system and had the following purchase transactions. Journalize all necessary transactions. Explanations are not required. View the transactions. Journalize all necessary transactions in the order they are presented in the transaction list. (Record debits first, then credits. Exclude explanations from journal entries. Round all numbers to the nearest whole dollar.) Jun. 20: Purchased inventory of $5,900 on account from Luca Diamonds, a jewelry importer. Terms were 1/15, n/45, FOB shipping point. Date Jun. 20 Accounts Debit Credit Transactions Purchased inventory of $5,900 on account from Luca Diamonds, a jewelry importer. Terms were 1/15, n/45, FOB shipping point. Paid freight charges, $200. Returned $700 of inventory to Luca Diamonds. Jun. 20 Jun. 20 Jul. 4 Jul. 14 Jul. 16 Jul. 18 Jul. 24 Paid Jia Diamonds, less allowance and discount. Paid Luca Diamonds, less return. Purchased inventory of $4,100 on account from Jia Diamonds, a jewelry…
Ramos Hair Styling is a wholesaler of hair supplies. Ramos Hair Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $30,957). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $280). c. Sold merchandise (costing $6,460) 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 $200) after year-end from sales made during the year. $ 55,040 310 13,600 6,800 172 320 PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Ramos Hair Styling. Net Sales Gross Profit S
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Ramos Hair Styling is a wholesaler of hair supplies. Ramos Hair Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $30,957). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $280). c. Sold merchandise (costing $6,460) 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 $200) after year-end from sales made during the year. $ 55,040 310 13,600 6,800 172 320 PA6-3 (Algo) Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage %
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Make sure it is transferrable to excel. Do it nicely. 1. Determine the following: a. Net Sales b. Net Purchases c. Cost of Goods Sold d. Bad Debts Expense
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