The adjusted trial balance of Faulk Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2012: Sales Revenue $800,000, Freight-out $12,000, Sales Returns and Allowances $24,000, and Sales Discounts $12,000.
Instructions
(a) Prepare the sales revenue section of the income statement.
(b) Prepare separate closing entries for (1) sales revenue and (2) the contra accounts to sales revenue.