The adjusted trial balance of Concord Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2020: Sales Revenue $728,400, Delivery Expense $12,780, Sales Returns and Allowances $25,320, and Sales Discounts $12,380.

a. Prepare the revenues section of the income statement.

b. Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.

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Business

Alvarado

5 July, 15:53

The adjusted trial balance of Concord Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2020: Sales Revenue $728,400, Delivery Expense $12,780, Sales Returns and Allowances $25,320, and Sales Discounts $12,380.

a. Prepare the revenues section of the income statement.

b. Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.

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Adyson Summers · Answer 1

Sales revenue 728,400

Sales R&A (25,320)

Delivery Expense (12,780) * considered freight-out

sales discount (12,380)

net sales: 677,920‬

sales revenue 728,400 debit

income summary 728,400 credit

--to close revenues accounts--

income summary 50,480

Delivery Expense 12,780

Sales Returns and Allowances 25,320

Sales Discounts 12,380.

--to close the contra account to sales---

Income summary 677,920

Retained Earnings 677,920