32000 Sales returns and allowances Sales revenue 13000 Y a S

32,000 Sales returns and allowances Sales revenue 13,000 Y (a)

Solution

Multistep income statement Sales Sales revenue 380000 Less Sales discount 8000 Sales return and allowance 13000 21000 Net sales 359000 Cost of goods sold 212000 Gross profit 147000 Operating expense Freight out 7000 Insurance expense 6000 Salaries and wages expense 58000 Rent expense 32000 Total operating expense 103000 Net operating income 44000