Identify the errors in the following incomestatement: Keepsakes Company Income Statement For the Year Ended February 29,

Identify the errors in the following incomestatement:

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Keepsakes Company Income Statement For the Year Ended February 29, 2012 Revenue from sales: Sales Add: Sales returns and allowances 7,200,000 . . .$275,000 130,000405,000 $7,605,000 4,075,000 $3,530,000 Gross sales... Cost of merchandise sold Selling expenses Administrative expenses.. Delivery expense $ 950,000 475,000 125,000 Total expenses 1,550,000 $1,980,000 Other expense: Interest revenue 30,000 $1,950,000 Gross profit