The following account titles and balances were taken from the adjusted trial balance of Wright Sales Co. at December 31, 2012. The company uses the periodic inventory method.

Account Title Balance

Advertising expense $ 10,400

Income taxes 8,200

Interest expense 5,000

Merchandise inventory, January 1 18,000

Merchandise inventory, December 31 20,100

Miscellaneous expense 800

Purchases 150,000

Purchase returns and allowances 2,700

Rent expense 18,000

Salaries expense 53,000

Sales 320,000

Sales returns and allowances 8,000

Transportation-in 6,200

Transportation-out 10,800

Gain on sale of land 4,000

Required

a. Prepare a schedule to determine the amount of cost of goods sold.

b. Prepare a multi-step income statement.

c. Prepare a single-step income statement.