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] Kelly Creations is a wholesaler of hair supplies. Kelly Creations uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $33,477). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $350). c. Sold merchandise (costing $8,455) 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 $270) after year-end from sales made during the year. PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Kelly Creations. Net Sales Gross Profit $ 59,520 380 17,800 8,900 186 390
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] Kelly Creations is a wholesaler of hair supplies. Kelly Creations uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $33,477). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $350). c. Sold merchandise (costing $8,455) 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 $270) after year-end from sales made during the year. PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Kelly Creations. Net Sales Gross Profit $ 59,520 380 17,800 8,900 186 390
Chapter1: Financial Statements And Business Decisions
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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.)
Kelly Creations is a wholesaler of hair supplies. Kelly Creations uses a perpetual inventory system. The following
transactions (summarized) bave been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $33,477).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for
cash refund (original cost of merchandise $350)
c. Sold merchandise (costing $8,455) 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 $270) after year-end from sales made during t
the year.
PA6-3 (Algo) Part 1
Required:
1. Compute Net Sales and Gross Profit for Kelly Creations.
Net Sales
Gross Profit
$ 59,520
380
17,800
8,900
186
390](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d4b00a5-a55d-4357-96b4-1a47e0f88e7c%2Fbb03be62-70c8-4702-890a-e445d8899ac0%2Fo8vbpyp_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.)
Kelly Creations is a wholesaler of hair supplies. Kelly Creations uses a perpetual inventory system. The following
transactions (summarized) bave been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $33,477).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for
cash refund (original cost of merchandise $350)
c. Sold merchandise (costing $8,455) 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 $270) after year-end from sales made during t
the year.
PA6-3 (Algo) Part 1
Required:
1. Compute Net Sales and Gross Profit for Kelly Creations.
Net Sales
Gross Profit
$ 59,520
380
17,800
8,900
186
390
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