The adjusted trial balance of Guevara Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2014:
Sales .................... $320,000
Sales Returns and Allowances .......... $9,600
Freight-out ................. $4,800
Sales Discounts ............... $6,000
Instructions
(a) Prepare the sales revenues section of the income statement.
(b) Prepare separate closing entries for.
(1) Sales,
(2) The contra accounts to sales.