Castillo Styling is a wholesaler of hair supplies. Castillo Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32, 757). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $330).. c. Sold merchandise (costing $7,885) 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. f. Anticipate further returns of merchandise (costing $250) after year-end from sales made during the year. Show Transcribed Text PA6-3 (Algo) Part 4 4. Castillo Styling is considering a contract to sell merchandise to a hair salon chain for $37,000. This merchandise will cost Castill Styling $24,300. What would be the increase (or decrease) to Castillo Styling gross profit and gross profit percentage? (Round Gross Profit Gross Profit Percentage Answer is complete but not entirely correct. increased by $ 33,866 decreased 10 $ 58,240 360 16, 600 8,300 U 45.8% 182 4. Castillo Styling is considering a contract to sell merchandise to a hair salon chain for $37,000. This merchandise will cost Castillo Styling $24,300. What would be the increase (or decrease) to Castillo Styling gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) 378
Castillo Styling is a wholesaler of hair supplies. Castillo Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32, 757). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $330).. c. Sold merchandise (costing $7,885) 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. f. Anticipate further returns of merchandise (costing $250) after year-end from sales made during the year. Show Transcribed Text PA6-3 (Algo) Part 4 4. Castillo Styling is considering a contract to sell merchandise to a hair salon chain for $37,000. This merchandise will cost Castill Styling $24,300. What would be the increase (or decrease) to Castillo Styling gross profit and gross profit percentage? (Round Gross Profit Gross Profit Percentage Answer is complete but not entirely correct. increased by $ 33,866 decreased 10 $ 58,240 360 16, 600 8,300 U 45.8% 182 4. Castillo Styling is considering a contract to sell merchandise to a hair salon chain for $37,000. This merchandise will cost Castillo Styling $24,300. What would be the increase (or decrease) to Castillo Styling gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) 378
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Castillo Styling is a wholesaler of hair supplies. Castillo Styling uses a perpetual inventory system. The following
transactions (summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $32, 757).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition)
for cash refund (original cost of merchandise $330)..
c. Sold merchandise (costing $7,885) 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.
f. Anticipate further returns of merchandise (costing $250) after year-end from sales made
during the year.
Show Transcribed Text
PA6-3 (Algo) Part 4
4. Castillo Styling is considering a contract to sell merchandise to a hair salon chain for $37,000. This merchandise will cost Castilli
Styling $24,300. What would be the increase (or decrease) to Castillo Styling gross profit and gross profit percentage? (Round
G
Gross Profit
Gross Profit Percentage
Answer is complete but not entirely correct.
increased
by $ 33,866
decreased
10
$ 58,240
360
16, 600
8,300
U
45.8%
182
4. Castillo Styling is considering a contract to sell merchandise to a hair salon chain for $37,000. This merchandise will cost Castillo
Styling $24,300. What would be the increase (or decrease) to Castillo Styling gross profit and gross profit percentage? (Round
"Gross Profit Percentage" to 1 decimal place.)
378
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