=+The accounts and their balances in the ledger of Rack Saver Co. on December 31, 2010, are as follows:

Cash $ 12,000 Sales $800,000 Accounts Receivable 72,500 Sales Returns and Allowances 11,900 Merchandise Inventory 170,000 Sales Discounts 7,100 Prepaid Insurance 9,700 Cost of Merchandise Sold 500,000 Store Supplies 4,200 Sales Salaries Expense 96,400 Office Supplies 2,100 Advertising Expense 25,000 Store Equipment 360,000 Depreciation Expense—

Accumulated Depreciation— Store Equipment —

Store Equipment 60,300 Store Supplies Expense —

Office Equipment 70,000 Miscellaneous Selling Expense 1,600 Accumulated Depreciation— Office Salaries Expense 64,000 Office Equipment 17,200 Rent Expense 16,000 Accounts Payable 46,700 Insurance Expense —

Salaries Payable — Depreciation Expense—

Unearned Rent 3,000 Office Equipment —

Note Payable Office Supplies Expense —

(final payment due 2018) 180,000 Miscellaneous Administrative Evan Hoffman, Capital 352,750 Expense 1,650 Evan Hoffman, Drawing 25,000 Rent Revenue —

Income Summary — Interest Expense 10,800