Using the selected year-end account balances at December 31, 20x6, for the Yacuma General Store shown below, prepare a 20x6 income statement. Show detail of net sales. The company uses the periodic inventory system. Beginning merchandise inventory was $26,000; ending merchandise inventory is $22,000.

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Account Name Debit Credit Sales $297,000 Purchases Sales Returns and Allowances Purchases Returns and Allowances $ 15,200 114,800 4,000 Freight-In 5,600 Selling Expenses 48,500 General and Administrative Expenses 37,200 Income Taxes 15,000