K 7 8 3 4 5 2 Record the allowance of $208 granted to the customer. Note: Enter debits before credi” aria-describedby=”dsd”>
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inverntory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $34,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $450). c. Sold merchandise (costing $6,175) to a customer, on account with terms 2/10, n/30. d. Collected half of the balance owed by the customer in (c) within the discount period. e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid $63,200 750 13,000 6,370 208 value: 1.50 polnts Required: 1. Compute Sales Revenue, Net Sales, and Gross Profit for Hair World. Sales Revenue Net Sales Gross Profit 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) GsPo Percentge eBook & Resources References Worksheet Difficulty: 2 Medium Learning Check my work value: 1.50 points 3. Prepare journal entries to record transactions (a)-(e). (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.) View transaction list Journal entry worksheet < 1 2 3 5 6 7 8 > Record the cash sales of $63,200. Journal entry worksheet 1 2 3 4 5 6 8 Record the cost of goods sold of $34,797. Note: Enter debits before credits. Transaction General Journal Debit Credit a(2). Record entry Clear entry View general journal Journal entry worksheet 5 1 2 3 4 6 7 Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $750 was given to the customer. Note: Enter debits before credits. Transaction General Journal Debit Credit b(1) Record entry Clear entry View general jounal Journal entry worksheet 1 2 3 4 5 6 7 8 Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $450. Note: Enter debits before credits Transaction General Journal Debit Credit b(2). Record entry Clear entry View general journal Journal entry worksheet Journal entry worksheet 1 5 6 7 3 4 Record the cost of goods sold of $6,175. Note: Enter debits before credits. Transaction General Journal Debit Credit c(2). Record entry Clear entry View general journal Journal entry worksheet 6 7 Journal entry worksheet > K 7 8 3 4 5 2 Record the allowance of $208 granted to the customer. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $18,000. This merchandise will cost.Hair World $11,440. 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.) Gross Profit by Gross Profit Percentage to %
