Hair World Incorporated is a wholesaler of hair supplies. Hair World uses a perpetual inventory system....

 

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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 $35,277). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $400). c. Sold merchandise (costing $9,880) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (c). $ 62,720 430 20,800 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 10,400 196 f. Anticipate further returns of merchandise (costing $320) after year-end from sales made during the year. 440 PA6-3 (Algo) Part 4 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $51,000. This merchandise will cost Hair World $33,400. 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 Gross Profit Percentage by to % 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 $35,277). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $400). c. Sold merchandise (costing $9,880) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (c). $ 62,720 430 20,800 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 10,400 196 f. Anticipate further returns of merchandise (costing $320) after year-end from sales made during the year. 440 PA6-3 (Algo) Part 4 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $51,000. This merchandise will cost Hair World $33,400. 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 Gross Profit Percentage by to %

Answer rating: 100% (QA)

Answer To calculate the increase or decrease in Hair Worlds gross profit a... View the full answer