The following list of accounts is taken from the December 31, 2020, unadjusted trial balance of Perdu Sales, a business that is owned by Eldon Perdu.

Cash $ 8,600

Merchandise inventory 10,400

Prepaid selling expense 8,600

Store equipment 46,000

Accumulated depreciation, store equipment $ 10,400

Accounts payable 15,440

Salaries payable 0

Eldon Perdu, capital 27,760

Eldon Perdu, withdrawals 4,200

Sales 918,000

Sales returns and allowances 39,000

Sales discounts 8,600

Cost of goods sold 461,000

Sales salaries expense 100,000

Utilities expense, store 13,200

Other selling expenses 76,000

Other administrative expenses 196,000

Additional information:

Accrued sales salaries amount to $3,800. Prepaid selling expenses of $5,500 have expired. Depreciation for the period is $3,100.

Required: Assuming a perpetual inventory system, complete the following: a. Journalize the adjusting journal entries.

Prepare a classified multiple-step income statement for the year ended December 31, 2020.

Analysis Component: Assume that for the year ended December 31, 2019, net sales were $660,000; operating expenses were $374,000; and there was a loss of $17,000. Calculate the companys gross profit ratios for 2019 and 2020. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)