Required information [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. Gross Profit Gross Profit Percentage by to $ 51,200 % 250 10,000 5,000 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $15,000. This merchandise will cost Hair World $10,000. What would be the increase (or decrease) to Hair World's gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) 160 350
Required information [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. Gross Profit Gross Profit Percentage by to $ 51,200 % 250 10,000 5,000 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $15,000. This merchandise will cost Hair World $10,000. What would be the increase (or decrease) to Hair World's gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) 160 350
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ore
![Required information
[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.
Gross Profit
Gross Profit Percentage
by
to
$ 51,200
%
250
10,000
5,000
4. Hair World is considering a contract to sell merchandise to a hair salon chain for $15,000. This merchandise will cost Hair World
$10,000. What would be the increase (or decrease) to Hair World's gross profit and gross profit percentage? (Round "Gross Profit
Percentage" to 1 decimal place.)
160
350](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5720640-502f-4397-9055-887a38ebd686%2F2009d568-6d23-4625-b384-4f4975b5e5d3%2Fbzwvh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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.
Gross Profit
Gross Profit Percentage
by
to
$ 51,200
%
250
10,000
5,000
4. Hair World is considering a contract to sell merchandise to a hair salon chain for $15,000. This merchandise will cost Hair World
$10,000. What would be the increase (or decrease) to Hair World's gross profit and gross profit percentage? (Round "Gross Profit
Percentage" to 1 decimal place.)
160
350
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