Required information CP6-3 (Algo) Recording Cash Sales, Credit Sales, Estimated and Actual Sales Returns, and Sales Allowances, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] Myers Books & More, is a student co-op. Myers Books & More uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $160,470). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $624). c. Sold merchandise (costing $9,540) to a customer on account with terms n/30. 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 $212) after month-end from sales made during the month. CP6-3 (Algo) Part 4 4. Myers Books & More is considering a contract to sell merchandise to a Myers Books & More organization for $16,200. This merchandise will cost Myers Books & More $12,960. Would this contract increase (or decrease) Myers Books & More dollars of gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage by to $ 291,500 1,690 21, 200 10,600 1,220 760 %
Required information CP6-3 (Algo) Recording Cash Sales, Credit Sales, Estimated and Actual Sales Returns, and Sales Allowances, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] Myers Books & More, is a student co-op. Myers Books & More uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $160,470). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $624). c. Sold merchandise (costing $9,540) to a customer on account with terms n/30. 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 $212) after month-end from sales made during the month. CP6-3 (Algo) Part 4 4. Myers Books & More is considering a contract to sell merchandise to a Myers Books & More organization for $16,200. This merchandise will cost Myers Books & More $12,960. Would this contract increase (or decrease) Myers Books & More dollars of gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage by to $ 291,500 1,690 21, 200 10,600 1,220 760 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
28
![Required information.
CP6-3 (Algo) Recording Cash Sales, Credit Sales, Estimated and Actual Sales Returns, and Sales
Allowances, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6]
[The following information applies to the questions displayed below.]
Myers Books & More, is a student co-op. Myers Books & More uses a perpetual inventory system. The following
transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $160,470).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash
refund (original cost of merchandise $624).
c. Sold merchandise (costing $9,540) to a customer on account with terms n/30.
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 $212) after month-end from sales made during
the month.
CP6-3 (Algo) Part 4
Gross Profit
Gross Profit Percentage
$ 291,500
1,690
21,200
4. Myers Books & More is considering a contract to sell merchandise to a Myers Books & More organization for $16,200. This
merchandise will cost Myers Books & More $12,960. Would this contract increase (or decrease) Myers Books & More dollars of
gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit
percentage. (Round "Gross Profit Percentage" to 1 decimal place.)
by
to
10,600
1,220
760](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F21c4b608-ae68-44fe-acf0-9264cf93a3c8%2F5334ff79-108b-46c9-929e-85d1b4fd68ff%2F4dhnwnq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information.
CP6-3 (Algo) Recording Cash Sales, Credit Sales, Estimated and Actual Sales Returns, and Sales
Allowances, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-6]
[The following information applies to the questions displayed below.]
Myers Books & More, is a student co-op. Myers Books & More uses a perpetual inventory system. The following
transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $160,470).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash
refund (original cost of merchandise $624).
c. Sold merchandise (costing $9,540) to a customer on account with terms n/30.
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 $212) after month-end from sales made during
the month.
CP6-3 (Algo) Part 4
Gross Profit
Gross Profit Percentage
$ 291,500
1,690
21,200
4. Myers Books & More is considering a contract to sell merchandise to a Myers Books & More organization for $16,200. This
merchandise will cost Myers Books & More $12,960. Would this contract increase (or decrease) Myers Books & More dollars of
gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit
percentage. (Round "Gross Profit Percentage" to 1 decimal place.)
by
to
10,600
1,220
760
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