The adjusted trial balance of Tsai Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2019: Sales Revenue $820,000, Freight-Out $16,000, Sales Returns and Allowances $25,000, and Sales Discounts $13,000.
Instructions
(a) Prepare the sales section of the income statement.
(b) Prepare separate closing entries for
(1) Sales revenue, and
(2) The contra accounts to sales revenue.