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1. Compute Sales Revenue, Net Sales, and Gross Profit for Hair World.

2. Compute the gross profit percentage. (Round your answer to the nearest whole percent.)

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.) THERE ARE 8 ENTRIES IN TOTAL

4. Hair Care is considering a contract to sell merchandise to a hair salon chain for $15,700. This merchandise will cost Hair Care $10,000.

(a) Compute the new gross profit percentage. (Round your answer to the nearest whole percent.)

(b) Would this contract increase or decrease Hair Cares gross profit percentage?

PLEASE ANSWER ALL THE QUESTIONS

Hair Care Inc. is a wholesaler of hair supplies. Hair Care uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. b. Sold merchandise for cash (cost of merchandise $29,497) $51,900 Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $430) 670 Sold merchandise (costing $5,100) to a customer, on account with terms 3/10, n/30 10,000 Collected half of the balance owed by the customer in (c) within the discount period 4,850 Granted an allowance to the customer in (c) 195 C. d. e

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