Required Information PB6-3 (Algo) Recording Sales 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.] Hardware Heaven (HH) is a local hardware store. HH uses a perpetual Inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $236,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $1,375). c. Sold merchandise (costing $3,368) 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 $1,290) after year-end from sales made during the year. PB6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for HH. Net Sales Gross Profit $530,000 2,200 5,600 2,800 1,100 2,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Required information
PB6-3 (Algo) Recording Sales 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.]
Hardware Heaven (HH) is a local hardware store. HH uses a perpetual Inventory system. The following transactions
(summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $236,350).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund
(original cost of merchandise $1,375).
c. Sold merchandise (costing $3,360) to a customer on account with terms n/38.
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 $1,290) after year-end from sales made during the
year.
PB6-3 (Algo) Part 1
Required:
1. Compute Net Sales and Gross Profit for HH.
Net Sales
Gross Profit
$530,000
2,200
5,600
2,800
1,100
2,000
Transcribed Image Text:Required information PB6-3 (Algo) Recording Sales 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.] Hardware Heaven (HH) is a local hardware store. HH uses a perpetual Inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $236,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $1,375). c. Sold merchandise (costing $3,360) to a customer on account with terms n/38. 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 $1,290) after year-end from sales made during the year. PB6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for HH. Net Sales Gross Profit $530,000 2,200 5,600 2,800 1,100 2,000
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