Question

Rebecca Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Interest Revenue, $966 Sales Revenue, $28,656 Administrative Expenses, $596 Cost of Goods Sold, $11,213 Delivery (freight-out) Expense, $689 Income Tax Expense, $1,189 Interest Expense, $1,492 General Expenses, $1,311 Sales Discounts, $2,318 Sales Returns and Allowances, $932 .Rebecca’s operating expenses are $

Answer 1

Answer:

operating expenses $2,596

Explanation:

                    Rebecca Department Stores

                           Income Statement

             For the Year Ended December 31, 202x

Sales revenue:

• Sales Revenue $28,656
• Sales Discounts -$2,318
• Sales Returns and Allowances -$932
• Net sales revenue                                              $25,406

Cost of goods sold                                                       -$11,213

Gross profit                                                                   $14,193

Operating expenses:

• Delivery (freight-out) Expense -$689
• Administrative Expenses, -$596
• General Expenses -$1,311                                   -$2,596

Income from operations                                              $11,597

Non-operating revenues and expenses

• Interest Revenue $966
• Interest Expense -$1,492                                      -$526

Net income before taxes                                             $11,071

Income Tax Expense                                                   -$1,189

Net income after taxes                                               $9,882