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The following account titles and balances were taken from the adjusted trial balance of King Co. for Year 2. The company uses the periodic inventory system. Account Title Balance Sales returns and allowances $ 10,900 Miscellaneous expense 5,500 Transportation-out 18,500 Sales 20,600 Advertising expense 850 Salaries expense 155,000 Transportation-in 2,950 Purchases 19, 250 Interest expense 55,500 Merchandise inventory, January 1 325,000 Rent expense 8,500 Merchandise inventory, December 31 6,450 Purchase returns and allowances 11,050 Loss on sale of land 4,500 Utilities expense 11,700 Required a. Prepare a schedule to determine the amount of cost of goods sold. (Amounts to be deducted should be indicated with minus sign.) For the Year Ended December 31, Year 2 Sales Sales revenue $ 20,600 (10,900) Sales returns and allowances $ 9,700 $ 18,500 850 Net sales Operating expenses Transportation-out Advertising expense Salaries expense Rent expense Utilities expense Miscellaneous expense 155,000 8,500 11,700 5,500 (200,050) Total expenses Non-operating items Interest expense Loss on sale of land (55,500) (4,500) Net income (loss) $ (250,350)