Required information PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit...
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Required information PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage (LO 6-4, LO 6-5) [The following information applies to the questions displayed below.] Larry's Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $500,000 erchandise for cash (cost of merchandise $ 224,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $1,900). c. Sold merchandise (costing $3,000) to a customer on account with terms n/30. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 3,000 5,000 2,500 950 PB6-3 Part 4 PB6-3 Part 4 4. LBS is considering a contract to sell building supplies to a local home builder for $20,000. These materials will cost LBS $16,000. Would this contract increase (or decrease) LBS's dollars of gross profit and its gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage increase decrease by to
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