Using the selected year-end account balances at December 31, 2014, for Proof General Store that follow, prepare a 2014 multistep income statement. Show detail of net sales. The company uses the periodic inventory system. Beginning merchandise inventory was $26,000; ending merchandise inventory is $22,000.
|
Account name
|
Debit
|
Credit
|
|
Sales
|
|
$297,000
|
|
Sales Returns and Allowances
|
$ 15,200
|
|
|
Purchases
|
114,800
|
|
|
Purchases Returns and Allowances
|
|
4,000
|
|
Freight-In
|
5,600
|
|
|
Selling Expenses
|
48,500
|
|
|
General and Administrative Expenses
|
37,200
|
|
|
Income Tax Expense
|
6,800
|
|