Required informationSkip to question [The following information applies to the questions displayed below.] Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32,397).$ 57,600b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $320).350c. Sold merchandise (costing $7,600) to a customer on account with terms n/60.16,000d. Collected half of the balance owed by the customer in (c).8,000e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.180f. Anticipate further returns of merchandise (costing $240) after year-end from sales made during the year.360 Required:Compute Net Sales and Gross Profit for Hughes Hair Design.

Net sales = Total sales - sales returns and the…

Answered: Hughes Hair Design is a wholesaler of…

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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Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a. Sold merchandise for cash (cost of merchandise $32,397).	$ 57,600
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $320).	350
c. Sold merchandise (costing $7,600) to a customer on account with terms n/60.	16,000
d. Collected half of the balance owed by the customer in (c).	8,000
e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.	180
f. Anticipate further returns of merchandise (costing $240) after year-end from sales made during the year.	360