PART 1 income statement.

The adjusted trial balance of Blossom Company shows these data pertaining to sales at the end of its fiscal year, October 31, 2017: Sales Revenue $903,400; Freight-Out $13,700; Sales Returns and Allowances $22,000; and Sales Discounts $15,400.

Prepare the sales section of the income statement.

PART 2 Account Titles and Explanation

On October 5, Blossom Company buys merchandise on account from Sunland Company. The selling price of the goods is $6,670, and the cost to Sunland Company is $3,630. On October 8, Blossom Company returns defective goods with a selling price of $650 and a scrap value of $250.

Record the transactions on the books of Sunland Company, assuming a perpetual approach(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)