Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory...
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Accounting
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 $44,797).
$83,200
b.
Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $600).
1,000
c.
Sold merchandise (costing $8,550) to a customer, on account with terms 2/10, n/30.
18,000
d.
Collected half of the balance owed by the customer in (c) within the discount period.
8,820
e.
Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid
288
Required:
1.
Compute Sales Revenue, Net Sales, and Gross Profit for Hair World.
2.
Compute the gross profit percentage. (Round your answer to 1 decimal place.)
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.)
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