Exercise 5-8Preparation of the Income Statement: Perpetual Inventory SystemSelected account balances

Exercise 5-8Preparation of the Income Statement: Perpetual Inventory SystemSelected account balances at December 31, 2014, for Infosys Company follow.Account NameDebitCreditSales$ 475,000Sales Returns and Allowances$ 23,500Cost of Goods Sold280,000Freight-In13,500Selling Expenses43,000General and Administrative Expenses87,000Income Tax Expense7,900HidePrepare a multistep income statement for the year ended December 31, 2014. Show detail of net sales. The company uses the perpetual inventory system, andFreight-In has not been included in Cost of Goods Sold. Infosys Company Income Statement For the Year Ended December 31, 2014 Net sales$ $ Gross margin$ Operating expenses$ Total operating expenses $ $

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