Required information

$[$The following information applies to the questions displayed below.$]$

The following unadjusted trial balance is prepared at fiscal year$-$end for Nelson Company. Nelson Company uses a

perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense$-$Store

Equipment, Sales Salaries Expense, Rent Expense$-$Selling Space, Store Supplies Expense, and Advertising Expense. It

categorizes the remaining expenses as general and administrative.

Additional Information:

a$.$ Store supplies still available at fiscal year$-$end amount to $$2,050.$

b$.$ Expired insurance, an administrative expense, is $$1,800$ for the fiscal year.

c$.$ Depreciation expense on store equipment, a selling expense, is $$1,525$ for the fiscal year.

d$.$ To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $$10,200$ of inventory is still

available at fiscal year$-$end.

Prepare an income statement