Smith Engineering uses the periodic inventory systemand has a December 31st year-end. The company began the year with inventory with a cost of $17,500. When Smith's staff counted inventory at December 31, inventory with a cost of $22,500 were on hand. The company also had the following account balances for the year (random order, all with normal balances):

Office Supplies Expense$4,700

Purchases235,000

Sales Discounts2,400

Advertising Expense9,800

Interest Income2,000

Freight In15,800

Freight Out12,200

Salesperson Salaries61,500

Sales Returns and Allowances10,200

Loss on Sale of PP&E550

Purchase Returns and Allowances9,800

Sales Revenue400,000

Purchase Discounts1,800

Management Salaries20,000

Multi-Step Income Statement(to the Gross Margin line only) for the year-ended December 31, 2020