Using the selected account balances at December 31, 20xx, for Weddings, Etc. that follow, prepare an income statement for the year ended December 31, 20xx. Show detail of net sales. The company uses the perpetual inventory system, and Freight-In has not been included in Cost of Goods Sold.

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Account Name Debit Sales Credit $475,000 Sales Returns and Allowances $ 23,500 Cost of Goods Sold 280,000 Freight-In 13,500 Selling Expenses 43,000 General and Administrative Expenses 87,000 Income Taxes 10,000