The accounting records of Wall's China Shop reflected the following balances as of January $1,$ Year $2$:

The following five transactions occurred in Year $2$:

First purchase $($cash$)120$ units @ $$95$

Second purchase $($cash$)195$ units @ $$103$

Sales $($all cash$)365$ units @ $$189$

Paid $$15,550$ cash for salaries expense

Paid cash for income tax at the rate of $25$ percent of income before taxes