Question: Identify the errors in the following incomestatement: Keepsakes Company Income Statement For the Year Ended February 29, 2012 Revenue from sales: $7,200.000 Sales... Add: Sales

Identify the errors in the following incomestatement:

Keepsakes Company Income Statement For the Year Ended February 29, 2012 Revenue from sales: $7,200.000 Sales... Add: Sales returns and allowances $275,000 Sales discounts . 130.000 405.000 Gross sales ... $7,605,000 Cost of merchandise sold. 4,075,000 Income from operations. Expenses: Selling expenses... Administrative expenses.. 53.530,000 $ 950,000 475.000 * ............. Delivery expense 125.000 ........ ....... ........ Total expenses. 1,550.,000 ....** $1.980.000 Other expense: 30,000 Interest revenue. Gross profit. $1.950.000

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