60.1K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below] Handy Howard's incorporated, is a student co-op. Handy Howard uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $167,470 ). b. Received nerchandise returned by custoners as unsatisfactory (but in perfect condition) for cash refund (originat cost of merchandise $644 ). c. Sold merchandise (costing $9,990 ) to a customer on account with teras 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, 1,320 f. Anticipate further returns of merchandise (costing \$222) after month-end from sales made during the month. B10 Prepare journal entries to record transactions (a) to ( $. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Handy Howard's Incorporated, is a student co-op. Handy Howard uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $167,470 ). b. Received nerchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise \$644). c. Sold perchandise (costing $9,990 ) to a customer on account with terms n/30. d. Collected half of the balance owed by the custoner in (c). e. Granted a partial allowance retating to credit sales the customer in (c) had not yet paid. f. Anticipate further returns of nerchandise (costing \$222) after month-end from sales nade during the month. Handy Howard is considering a contract to sell merchandise to a Handy Howard organization for $17,200. This merchandise will cost Handy Howard $13,760. Would this contract increase (or decrease) Handy Howard dollars of gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.)

Answer & Explanation Solved by verified expert

See Answer