The following are selected ledger accounts of Blossom Corporation at December 31, 2017.

Cash		$186,660		Salaries and wages expense (sales)		$285,660
Inventory		536,660		Salaries and wages expense (office)		347,660
Sales revenue		4,276,660		Purchase returns		16,660
Unearned sales revenue		118,660		Sales returns and allowances		80,660
Purchases		2,787,660		Freight-in		73,660
Sales discounts		35,660		Accounts receivable		144,160
Purchase discounts		28,660		Sales commissions		84,660
Selling expenses		70,660		Telephone and Internet expense (sales)		18,660
Accounting and legal services		34,660		Utilities expense (office)		33,660
Insurance expense (office)		25,660		Miscellaneous office expenses		9,660
Advertising expense		55,660		Rent revenue		241,660
Delivery expense		94,660		Casualty loss (before tax)		71,660
Depreciation expense (office equipment)		49,660		Interest expense		177,660
Depreciation expense (sales equipment)		37,660		Common stock ($10 par)		901,660

Blossoms effective tax rate on all items is 34%. A physical inventory indicates that the ending inventory is $687,660.

BLOSSOM CORPORATION Income Statement For the Year Ended December 31, 2017 Net Sales 4160340 Cost of Goods Sold 3393320 Gross Profit/(Loss) 767020 Selling Expenses 575300 Administrative Expenses 500960 358720 Income From Operations Rent Revenue 241660