[The following information applies to the questions displayed below.] Hughes Hair Design is a wholesaler...
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[The following information applies to the questions displayed below.] Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandine $32,397 ). b. Received merchanchise returned by custoners as unsatisfactory (but in perfect condition) $57,600 for cash refund (original cost of nerchandise $320 ). c.Soldmerchandise(costing$7,600)toacustoseronaccountwithtermsn/60.d.Collectedhalfofthebalanceonedbythecustomerin(c).8,00016,000 paid. 6. Mnticipate further returns of merchanditie (costing $240 ) after year-end fron sales made during the year. Required: 1. Compute Net Sales and Gross. Profit for Hughes Hair Design. 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) 4. Hughes Hair Design is considering a contract to sell merchandise to a hair salon chain for $35,000. This merchandise will cost Hughes Hair Design $23,000. What would be the increase (or decrease) to Hughes Hair Design gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.)
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