Chocolate Treats has the following account balances:

Cost of goods sold		$400,000		Rent expense		$45,000
Depreciation expense		12,500		Salaries expense		55,000
Insurance expense		3,300		Sales		555,000
Interest expense		10,500		Sales discounts		5,800
Interest revenue		9,400		Sales returns and allowances		15,500

Assuming Chocolate Treats uses a multiple-step income statement, calculate the following: (a) net sales, (b) gross profit, (c) operating expenses, (d) profit from operations, and (e) profit.

(a) Net sales		$
(b) Gross profit		$
(c) Operating expenses		$
(d) Profit from operations		$
(e) Profit		$

The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.

Dec. 3		Ivanhoe Company sold merchandise to Thomas Co. for $38,000, terms 2/10, n/30, FOB destination. This merchandise cost Ivanhoe Company $18,000.
4		The correct company paid freight charges of $775.
8		Thomas Co. returned unwanted merchandise to Ivanhoe. The returned merchandise had a sales price of $1,900 and a cost of $990. It was restored to inventory.
13		Ivanhoe Company received the balance due from Thomas Co.

Prepare the journal entries to record these transactions on the books of Thomas Co. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 3, Dec. 4, Dec. 8, Dec. 13
	(Purchase on account.)
Dec. 3, Dec. 4, Dec. 8, Dec. 13
Dec. 3, Dec. 4, Dec. 8, Dec. 13
	(To record purchase return.)
Dec. 3, Dec. 4, Dec. 8, Dec. 13
	(Payment on account.)