This answer was given already but I just want to ask question again because I$\text{'}$m confused and hope you will explain it well to me$.$

$*$Calculate for Net Sales$*$

Cash sales of merchandise:

$50,000+105,000=155,000$

Sales Account:

$25,000+27,000=52,000$

$($Please explain well why is it $25,000$ on sales account wherein fact I didn't see that kind of amount on the test.$)$

Total Sales: $155,000+52,000=207,000$

Less: Sales Return: $1,300$

Less: Sales discounts: $3,900$

Net Sales: $207,000-1,300-3,900=201,800$

$*$Calculate of COGS$*$

Merchandise Inventory at the beginning: $8,000$

Add: purchase $($including freight&discounts$)$

$35,000(2\%$ discounts$)$

$35,000-700=34,300$

$8,000(10\%$ discount$)$

$8,000-800=7,200$

$9,000(1\%$discount$)$

$9,000-90=8,910$

$12,000($with freight$)$

$12,000-1,200=13,200$

Total Purchase: $34,000+7,200+8,910+13,200=63,610$

COG available for sale:

$8,000+63,610=71,610$

Less: Merchandise inventory at end:

$42,000$

CoGS: $71,610-42,000=29,610$

$*$GROSS PROFIT$*$

Net Sales: $201,800$

Less: COGS: $29,610$

$=172,190$

$*$OPERATING EXPENSE$*$

Wages paid: $10,000+10,000=20,000$

Unwages paid: $1,800$

Utilities expense: $1,800$

Store supplies used:

$2,500($beginning$)+900($end$)+1,200=2,200$

Depreciation: $1,000$

Total operating expense: $26,800$

$*$NET INCOME$*$

Gross Profit: $172,190$

Less: Total operating expense: $26,800$

Net Income: $145,390$

My question is why is that $15,000$ of sales merchandise account, $40,000$ of purchase of merchandise for cash, $20,000$ of purchase of merchandise account, $1,800$ of freight paid on merchandise purchased and $1,400$ of freight paid on cash sales are not included on the given calculation? I hope you helped me cause I really want to understand it well. Thank you.

Selected transactions of G$.$ Calma Trading during the first $15$ days of January $2011$ were as follows:

$\backslash$table$[[,],[\backslash$table$[[,],[$Store supplies purchased on account,$15,000],[$Purchase of merchandise for cash,$2,500],[$Purchase of merchandise on account,$40,000],[$Freight paid on merchandise purchased,$20,000],[$Purchase discounts enjoyed,$],[$Wages paid for the period,$],[,10,000],[$Retumed defective merchandise nurchased for cach,$1,300],[,1,000]]]]$

Transactions during the second half of the month:

$\backslash$table$[[$Cash sales,$105,000],[$Sales on account,$27,000],[$Freight paid on cash sales,$1,400]]$

Purchases:

$P35,000,$ terms $\frac{2}{10},\frac{n}{30}($paid within discount period$)$

$P8,000,$ terms $10-10\%,\frac{5}{5},\frac{n}{30}($paid within discount period$)$

$P9,000,$ terms $\frac{1}{10},\frac{n}{30}($paid beyond discount period$)$

$P12,000$ cash purchases, FOB destination $($freight$,P1,200)$

Wages paid for the second half of the month

Unpaid wages at the end of month

Utilities expense for the month $($unpaid$)$

Interest earned on deposits

Additional information:

Merchandise inventory at the beginning of the month

Merchandise inventory at the end of the month

Store supplies on hand at the end of the month

REQUIRED:

Prepare a multi$-$step income statement for the period ended January $31,2011.$