Using the selected account balances at December 31, 20xx, for Tents, 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. E-4

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Account Name Debit Credit Sales $237,500 Sales Returns and Allowances $ 11,750 Cost of Goods Sold 140,000 Freight In 6,750 Selling Expenses 21,500 General and Administrative Expenses 43,500 Income Taxes 5,000