The adjusted trial balance of Windsor Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2020: Sales Revenue $743,800, Delivery Expense $10,950, Sales Returns and Allowances $22,820, and Sales Discounts $11,170

A) Prepare the revenues section of the income statement.

B) Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.

A) Prepare the revenues section of the income statement.

Sales Revenue = $743,800

Sales Discounts = ($11,170)

Sales Returns and Allowances = ($22,820)

Net Sales = $709,810

B) Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.

(1) Dr. Cr.

Revenue Expense $743,800

Income Summary $743,800

(2) Dr. Cr.

Income Summary $33,990

Sales Discounts $11,170

Sales Returns and Allowances $22,820