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

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Question

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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