Exercise 13.1 Classifying income statement items. LO 13-1 The accounts listed below appear on the worksheet of Heritage Crafts, Indicate the section of the classified income statement in each account will be reported points eBook 1. Purchases returns and allowances 2. Telephone expense 3. Sales returns and alowances 4. Purchases 5. Interest income 6. Merchandise inventory 7. Interest expense 8. Sales Print References 10 Rent expense 11. Sales discounts 12 Supplies expense 13. Freight in 14 Purchase discounts 15