## 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.*Foster Supplies is a wholesaler of hair supplies. Foster Supplies uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:a. Sold merchandise for cash (cost of merchandise $34,917). *$62,080*b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $390). *$420*c. Sold merchandise (costing $9,595) to a customer on account with terms n/60. *$20,200*d. Collected half of the balance owed by the customer in (c). *$10,100*e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. *$194*f. Anticipate further returns of merchandise (costing $310) after year-end from sales made during the year. *$430*### PA6-3 (Algo) Part 1#### Required:1. Compute Net Sales and Gross Profit for Foster Supplies.The response box shows the following (Compute Net Sales and Gross Profit for Foster Supplies):- **Net Sales**: $81,860 - **Gross Profit**: $16,900 Note: The answer is marked as incomplete but not entirely correct.

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Description: ## 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.*Foster Supplies is a

Sales return and allowances are the accounts that represent all the returns of sales made i.e.…

Business

Accounting

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.] Foster Supplies is a wholesaler of hair supplies. Foster Supplies uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $34,917). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $390). c. Sold merchandise (costing $9,595) 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 $310) after year-end from sales made during the year. PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Foster Supplies. Answer is complete but not entirely correct. Net Sales 81,860 X Gross Profit 16,900 S S $ 62,080 420 20, 200 10,100 194 430

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.] Foster Supplies is a wholesaler of hair supplies. Foster Supplies uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $34,917). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $390). c. Sold merchandise (costing $9,595) 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 $310) after year-end from sales made during the year. PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Foster Supplies. Answer is complete but not entirely correct. Net Sales 81,860 X Gross Profit 16,900 S S $ 62,080 420 20, 200 10,100 194 430

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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