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Zinaida [17]
3 years ago
14

The adjusted trial balance of Lopez Company shows the following data pertaining to sales at the end of its fiscal year, October

31, 2014: Sales Revenue $852,850, Delivery Expense $13,380, Sales Returns and Allowances $24,030, and Sales Discounts $12,760.
A) Prepare the revenues section of the income statement.
B) Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.
Business
1 answer:
Oksana_A [137]3 years ago
6 0

Answer:

A) Prepare the revenues section of the income statement.

                                     Lopez Company

         Income Statement for the year ended MM DD, YY

Sales Revenue                              $852,850

-Sales Returns and Allowances   $24,030

-Sales Discounts                          <u> $12,760 </u>

= Net Sales                                   <u>$816,060</u>

B) Prepare separate closing entries for

(1) sales

                                                          Dr.                 Cr.

Sales                                            $852,850

Income Summary                                               $852,850

(2) the contra accounts to sales.

                                                          Dr.                 Cr.

Income Summary                        $36,736

Sales Returns and Allowances                         $24,030

Sales Discount                                                   $12,706

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