Campus Stop, Incorporated, is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected from 2010:
a. Sold merchandise for Cash (cost of merchandise $152,070). ----$275,000
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise &800).-----1600
c. Sold merchandise (costing $9,000) to a customer, on account with terms 2/10, n/30.-----20,000
d. Collected half of the balance owed by the customer in (c) within the discount period. -----9,800
e. Granted an allowance to the customer in (c). ----- 1,800

Required:
1. Compute sales revenue, net sales, and gross profit for Campus Stop.
2. Compute the gross profit percentage.
3. Prepare journal entries to record transactions (a)-(e).
4. Campus Stop is considering a contract to sell merchandise to a campus organization for $15,000. This merchandise will cost Campus Stop $12,000. Would this contract increase (or decrease) Campus Stop's gross profit and gross profit percentage? How should Campus Stop decide whether to accept the contract?
TIP: The impact on gross profit (a dollar amount) may differ from the impact on gross profit percentage.