The following two closing entries (with expenses combined to shorten the exercise) were made by Northwest Sales at the end of its 1990 annual accounting period.

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Use the information in the closing entries to prepare an income statement for Northwest Sales.

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Dec. 31 Income Summary. 316,800.00 Merchandise Inventory Sales Returns and Allowances Sales Discounts. Purchases Transportation-In. Selling Expenses. 42,000.00 2,400.00 3,600.00 180,000.00 4,800.00 48,000.00 General and Administrative Expenses. 36,000.00 31 Merchandise Inventory 55,000.00 Sales. 300,000.00 Purchases Returns and Allowances. 1,200.00 Purchases Discounts 2,400.00 Income Summary. 358,600.00