Castillo Supplies (CS) is a local hardware store. CS uses a perpetual inventory system. The following transactions
(summarized) have been selected for analysis:
a. Sold corchandise for cast cost of derchandise 3228,350). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund
(original cost of merchandise $1,125).
c. Sold merchandise (costing $3,120) to a
customer on account wth teresun/36
d. Collected half of the balance owed by the customer in (c).
.Granted a partial allowance relating to credit sales the customer in (e) had not yet paid.
Anticipate
merchandise (costing $1,030)
after year end roansa
rado durine the
$510,000
1,88
5,200
2,600
1,000
1,60¢ 4. CS'is considering a contract to sell bullding supplles to a local home bullder for $20,200. These matertals wil cost CS $16,160, Would this contract increase (or decrease) cs's dollars of gross profit and its gross profit percentage?