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Foster Supplies is a wholesaier of hair supplies. Foster Supplies uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:
Foster Supplies is a wholesaier of hair supplies. Foster Supplies uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $34,917). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $390). c. Sold merchandise (costing $9,595) 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 $310) after year-end from sales made during the year. $ 62,080 420 20,200 10, 100 194 430 Required: 1. Compute Net Sales and Gross Profit for Foster Supplies. 81,666 37,544 Net Sales %24 Gross Profit
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