Using the selected account balances at December 31, 2011, for Parties, Etc. that follow, prepare an income statement for the year ended December 31, 2011. Show detail of net sales. The company uses the perpetual inventory system, and Freight-In has not been included in Cost of Goods Sold.

Account Name Debit Credit $249,000 Sales Sales Returns and Allowances Cost of Goods Sold Freight-In Selling Expenses General and Administrative Expenses Income Taxes 11,750 142,000 7,350 21,500 43,500 6,000