Part 1: Displayed below are five transactions
(1) Beginning merchandise inventory Net purchases Cost of merchandise available for sale	$75,000 $15,800 ?
(2) Net sales Cost of merchandise sold Gross profit on sales	$65,000$ 45,500 ?
(3) Purchases Transport in Cost of delivered merchandise	$25,500 $3,400 ?
(4) Sales Sales return of allowances Net sales	$120,000 $12,000 ?
(5) Gross profit Operating expenses Net profit	$20,200 $16,400 ?
Instruction: Compute the missing amounts.

Part 2:
Prepare an Income Statement from the following information:

Sales	$500,000
Sales Discount	$650
Sales Return as Allowance	$3,000
Beginning Merchandise Inventory	$85,000
Net Purchases	$265,000
Transport In	$4,200
Purchase Discount	$1,500
Purchase Return Allowance	$1,700
Closing Merchandise Inventory	$76,000
Advertisement Expenses	$4,500
Insurance Expenses	$1,500
Bank and Fees	$1,200
Maintenance Expenses	$3,200
Payroll Tax Expenses	$7,600
Rent Expenses	$12,000
Salaries Expenses	$36,000
Supplies Expenses	$3,200
Utilities Expenses	$1,700
Federal Corporation IncomeTax Expenses	$ 1,200