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 4 4. Ramos Hair Styling is considering a contract to sell merchandise to a hair salon chain for $27,000. This merchandise will cost Rar Hair Styling $17,800. What would be the increase (or decrease) to Ramos Hair Styling gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage by to %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 4
4. Ramos Hair Styling is considering a contract to sell merchandise to a hair salon chain for $27,000. This merchandise will cost Rar
Hair Styling $17,800. What would be the increase (or decrease) to Ramos Hair Styling gross profit and gross profit percentage?
(Round "Gross Profit Percentage" to 1 decimal place.)
Gross Profit
Gross Profit Percentage
by
to
%
Transcribed Image Text: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 4 4. Ramos Hair Styling is considering a contract to sell merchandise to a hair salon chain for $27,000. This merchandise will cost Rar Hair Styling $17,800. What would be the increase (or decrease) to Ramos Hair Styling gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage by to %
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