Required information PA6-3 (Static) 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.] Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $28,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $220). c. Sold merchandise (costing $4,750) 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 $140) after year-end from sales made during the year. $ 51,200 250 10,000 5,000 160 350
Required information PA6-3 (Static) 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.] Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $28,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $220). c. Sold merchandise (costing $4,750) 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 $140) after year-end from sales made during the year. $ 51,200 250 10,000 5,000 160 350
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Required information
PA6-3 (Static) 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.]
Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following
transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $28,797).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition)
for cash refund (original cost of merchandise $220).
c. Sold merchandise (costing $4,750) 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 $140) after year-end from sales made
during the year.
PA6-3 (Static) Part 3
<
View transaction list
Journal entry worksheet
3. Prepare journal entries to record transactions (a)-(f. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
1
2
3
4
Note: Enter debits before credits.
5
6
Sold merchandise for $51,200 cash. Record the entry.
7
8
$ 51,200
9 10 >
250
10,000
5,000
160
350](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58f64e99-b3fb-491d-a9f5-7a66a1bd819c%2Fe15d4039-c89d-4de4-87a1-de25c25fc1f1%2Fyb6q7w_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
PA6-3 (Static) 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.]
Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following
transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $28,797).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition)
for cash refund (original cost of merchandise $220).
c. Sold merchandise (costing $4,750) 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 $140) after year-end from sales made
during the year.
PA6-3 (Static) Part 3
<
View transaction list
Journal entry worksheet
3. Prepare journal entries to record transactions (a)-(f. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
1
2
3
4
Note: Enter debits before credits.
5
6
Sold merchandise for $51,200 cash. Record the entry.
7
8
$ 51,200
9 10 >
250
10,000
5,000
160
350
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