Using the selected year-end account balances at December 31, 20x2, for the Happ General Store shown below, prepare a 20x2 income statement. Show detail of net sales. The company uses the periodic inventory system. Beginning merchandise inventory was $52,000; ending merchandise inventory is $44,000. E-7

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Account Name Debit Credit Sales Sales Returns and Allowances $594,000 $ 30,400 Purchases 229,600 Purchases Returns and Allowances 8,000 Freight In 11.200 Selling Expenses 97,000 General and Administrative Expenses 74.400 Income Taxes 30,000