The following data were selected from the records of Sykes Company for the year ended December $31,$ current year.

Balances January $1,$ current year

Accounts receivable $($various customers$)$ $$121,000$

$5,000$

Allowance for doubtful accounts

$5,000$

In the following order, except for cash sales, the company sold merchandise and made collections on credit terms $\frac{5}{10},\frac{n}{30}($assume a unit sales price of $$600$ in all transactions$).$

Transactions during current year:

a$.$ Sold merchandise for cash, $$260,000.$

b$.$ Sold merchandise to R$.$ Smith; invoice price, $$8,500.$

c$.$ Sold merchandise to K$.$ Miller; invoice price, $$40,000.$

d$.$ Two days after purchase date, R$.$ Smith returned one of the units purchased in $($b$)$ and received account credit.

e$.$ Sold merchandise to B$.$ Sears; invoice price, $$22,000.$

f$.$ R$.$ Smith paid his account in full within the discount period.

g$.$ Collected $$90,000$ cash from customer sales on credit in prior year, all within the discount periods.

h$.$ K$.$ Miller paid the invoice in $($c$)$ within the discount period.

i$.$ Sold merchandise to R$.$ Roy; invoice price, $$17,500.$

j$.$ Three days after paying the account in full, K$.$ Miller returned seven defective units and received a cash refund.

k$.$ After the discount period, collected $$7,000$ cash on an account receivable on sales in a prior year.

I. Wrote off a prior year account of $$2,000$ after deciding that the amount would never be collected.

$m.$ The estimated bad debt rate used by the company was $1\mathrm{.}0$ percent of credit sales net of returns.

$2.$ Show how the accounts related to the preceding sale and collection activities should be reported on the current year income statement.

Note: Round vour answers to the nearest whole dollar amount.