PA6-3 Recording Sales with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5]
[The following information applies to the questions displayed below.]
Hair World Inc. 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 $40,797). | $ | 75,200 | |
b. | Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $540 ). | 900 | ||
c. | Sold merchandise (costing $7,600 ) to a customer on account with terms n/60. | 16,000 | ||
d. | Collected half of the balance owed by the customer in (c). | 8,000 | ||
e. | Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. | 256 | ||
PA6-3 Part 4
PA6-3 Recording Sales with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5]
[The following information applies to the questions displayed below.]
Hair World Inc. 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 $40,797). | $ | 75,200 | |
b. | Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $540 ). | 900 | ||
c. | Sold merchandise (costing $7,600 ) to a customer on account with terms n/60. | 16,000 | ||
d. | Collected half of the balance owed by the customer in (c). | 8,000 | ||
e. | Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. | 256 | ||
PA6-3 Part 4
Answer is complete but not entirely correct.
|
With current data: | |
Sales revenue ($75,200 + $16,000) | $91,200 |
Less: Sales Returns and allowances ($900 + $256) | ($1,156) |
Net Sales | $90,044 |
Less: Cost of goods sold ($40,797 - $540 + $7,600) | ($47,857) |
Gross Profit | $42,187 |
Gross profit rate ($42,187/$90,044*100) | 46.9% |
With new sale: | |
Sales revenue ($75,200 + $16,000 + $21,000) | $112,200 |
Less: Sales Returns and allowances ($900 + $256) | ($1,156) |
Net Sales | $111,044 |
Less: Cost of goods sold ($40,797 - $540 + $7,600 + $12,880) | ($60,737) |
Gross Profit | $50,307 |
Gross profit rate ($50,307/$112,200*100) | 45.3% |
Therefore, Gross profit is increased from $42,187 to $50,307 and the gross profit rate is decreased from 46.9% to 45.3%. |
PA6-3 Recording Sales with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5]...
Required information g Sales with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5] [The following information applies to the questions displayed below. Hair World Inc. 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 $20,797) b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) $35,200 for cash refund (original cost of merchandise...
[The following information applies to the questions displayed below.] Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $75,200 900 a. Sold merchandise for cash (cost of merchandise $40,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $540 ). c. Sold merchandise (costing $7,600 ) to a customer on account with terms n/60....
Required information [The following information applies to the questions displayed below.) Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $75,200 a. Sold merchandise for cash (cost of merchandise $40,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $540 ). c. Sold merchandise (costing $7,600 ) to a customer on account with terms...
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Required information [The following information applies to the questions displayed below.] Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $75,200 a. Sold merchandise for cash (cost of merchandise $40,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $540 ). c. Sold merchandise (costing $7,600 ) to a customer on account with terms...
Required information PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5) [The following information applies to the questions displayed below.) Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis $500,000 a. Sold merchandise for cash (cost of merchandise $224,350) b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost...
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