Selected account balances at December 31, 2011, for Receptions, Etc. are listed below. Prepare an income statement for the year ended December 31, 2011. Show detail of net sales. The company uses the perpetual inventory system, and Freight-In has not been included in Cost of GoodsSold.

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Credit $498,000 Account Name Sales Sales Retums and Allowances Cost of Goods Sold Freight In Selling Expenses General and Administrative Expenses87,000 Debit 23,500 284,000 14,700 43,000