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The following amounts appear on the trial balance of Valentine Variety Store, Inc. as of December 31, 20x2, the end of its fiscal year Debit

The following amounts appear on the trial balance of Valentine Variety Store, Inc. as of December 31, 20x2, the end of its fiscal year

Debit Credit
Cash $4,000
Merchandise Inventory $15,000
Other assets $8,000
Liabilities $4,000
Common stock $5,000
Retained earnings $7,300
Sales $80,000
Sales return and allowance $600
Cost of goods sold $47,700
General and administrative expense $8,000
Selling expenses $13,000
Totals $96,300 $96,300

On December 31, 20x1, the companys merchandise inventory amounted to $13,000. Supplementary records of merchandise activities during the 20x2 year disclosed the following:

Invoice cost of merchandise purchases $48,500

Purchase discount received 900

Purchase returns and allowances received 400

Cost of transportation -in 2,500

Required:

Using the data above, complete the income statement for valentine Variety Store Inc. for December 31, 20x2 using the multiple step method

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