Required information PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5) [The following information applies to the questions displayed below.) 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 $34,197). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $370). c. Sold merchandise (costing $9,025) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (e). e. Granted a partial allowance relating to credit sales the customer in (e) had not yet paid. f. Anticipate further returns of merchandise (coating $290) after year-end from sales made during the year. Gross Profit Gross Profit Percentage by to $ 60,800 % 400 19,000 9,500 PA6-3 (Algo) Part 4 4. Ramos Hair Styling is considering a contract to sell merchandise to a hair salon chain for $45,000. This merchandise will cost Ramos Hair Styling $29,500. 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.) 190 410
Required information PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5) [The following information applies to the questions displayed below.) 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 $34,197). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $370). c. Sold merchandise (costing $9,025) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (e). e. Granted a partial allowance relating to credit sales the customer in (e) had not yet paid. f. Anticipate further returns of merchandise (coating $290) after year-end from sales made during the year. Gross Profit Gross Profit Percentage by to $ 60,800 % 400 19,000 9,500 PA6-3 (Algo) Part 4 4. Ramos Hair Styling is considering a contract to sell merchandise to a hair salon chain for $45,000. This merchandise will cost Ramos Hair Styling $29,500. 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.) 190 410
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross
Profit Percentage [LO 6-4, LO 6-5]
[The following information applies to the questions displayed below.)
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 $34,197).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition)
for cash refund (original cost of merchandise $370).
c. Sold merchandise (costing $9,025) 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 (e) had not yet
paid.
f. Anticipate further returns of merchandise (costing $290) after year-end from sales made
during the year.
Gross Profit
Gross Profit Percentage
by
to
$ 60,800
PA6-3 (Algo) Part 4
4. Ramos Hair Styling is considering a contract to sell merchandise to a hair salon chain for $45,000. This merchandise will cost Ramos
Hair Styling $29,500. 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.)
%
400
19,000
9,500
190
410](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa880cc3d-71b2-44bc-9eb8-ccb18aa2c0ed%2F9b254117-8353-42b7-8c18-10816c5663fa%2F70699nm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
PA6-3 (Algo) Recording Sales with Discounts and Estimated and Actual Returns, and Analyzing Gross
Profit Percentage [LO 6-4, LO 6-5]
[The following information applies to the questions displayed below.)
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 $34,197).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition)
for cash refund (original cost of merchandise $370).
c. Sold merchandise (costing $9,025) 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 (e) had not yet
paid.
f. Anticipate further returns of merchandise (costing $290) after year-end from sales made
during the year.
Gross Profit
Gross Profit Percentage
by
to
$ 60,800
PA6-3 (Algo) Part 4
4. Ramos Hair Styling is considering a contract to sell merchandise to a hair salon chain for $45,000. This merchandise will cost Ramos
Hair Styling $29,500. 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.)
%
400
19,000
9,500
190
410
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