A fire during 2018 destroyed most of the accounting records of Lyons Entertainment, Inc. The only accounting data for 2018 that Lyons can come up with are the following balances at December 31, 2018. The general manager also knows that uncollectible-account expense should be 5% of its service revenue on credit.

Accounts receivable, December 31, 2018 .................... $180,000
Less: Allowance for bad debts ......................................... (22,000)
Total expenses, excluding bad-debt expense................ 670,000
Collections from customers ............................................. 840,000
Write-o€s of bad receivables ............................................... 30,000
Accounts receivable, December 31, 2017 ...................... 110,000

Prepare a summary income statement for Lyons Entertainment, Inc., for the year ended December 31, 2018. The stockholders want to know whether the company was profitable in 2018. Use a T-account for Accounts Receivable to compute service revenue. Assume that all revenues are on credit.