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Required Information [The following information applies to the questions displayed below.) 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: $63,200 a. Sold merchandise for cash (cost of merchandise $34,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $450 ). c. Sold merchandise (costing $6,175 ) to a customer on account with terms n/60. 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. 750 13,000 6,500 208 Required: 1. Compute Net Sales and Gross Profit for Hair World. Net Sales Gross Profit Required Information [The following information applies to the questions displayed below.) 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: $63,200 a. Sold merchandise for cash (cost of merchandise $34,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $450). c. Sold merchandise (costing $6,175 ) to a customer on account with terms n/60. 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. 750 13,000 6,500 208 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage 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: $63,200 a. Sold merchandise for cash (cost of merchandise $34,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $450 ). Sold merchandise (costing $6,175 ) to a customer on account with terms n/60. 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. 750 13,000 6,500 208 3. Prepare journal entries to record transactions (a)-e). (If no entry is requlred for a transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 Record the cash sales of $63,200. Note: Enter debits before credits Transaction General Journal Debit Credit a(1) 1 Record the cash sales of $63,200. 2 Record the cost of goods sold of $34,797. 3 Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $750 was given to the customer. 4 Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $450. 5 Record the sales on account of $13,000 on terms n/60. 6 Record the cost of goods sold of $6,175. 7 Record the collection of half of the balance of $6,500 owed by the customer within the discount period. & Record the allowance of $208 granted to the customer

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